Judging from the high of 91c drop to 65.5c despite flow of good news (ROW granted and increased exploration target), this has lead me to believe that someone knows that a CR is coming. This is quite similar to other stocks like ARU where those in the knowing dump the stock close to the CR price.
Normally the SP after CR is likely to be gap down or up.
Nonetheless, STB managed to get a premium from institutional investors. Potash, large resource - there are similarities.
It all depends on who have they got onboard. If this is at a premium, judging from many stocks that has premium CR, if this gap up, then you can make quite a decent profit at a very short time. The next target is $1.
The key challenge is getting Federal approval which given that it's about 9 months out, I believe there'll be opportunities to buy down the track once all the hype are gone.
cheers
TRH Price at posting:
69.5¢ Sentiment: LT Buy Disclosure: Not Held
