can i still buy?, page-21

You can calculate all you like but it's the psychology of the marketplace that determines the share price. If you really do want to do calculations for the short term, you need to base them on the new issue price (.015) as a baseline taking into account the actual value of the company with the new shares issued plus a bit for potential. Disregard any previous prices or highs which are now irrelevant.

There are going to be a lot of shares (more than half of the eventual shares) bought at the issue price of .015. There will likely be quite a lot of people who will want to sell at something above their purchase price and make a bit of profit but probably not so many buyers at elevated prices - because those most interested in buying will likely have purchased the issues as well - or if they are canny will wait until it seems to have bottomed out.

Therefore, there is a substantial downward pressure on the sp down toward the issue price of the new shares. Then take into account some traders (I would not like to openly call them manipulators) who will have got hold of reasonable size parcels who will see this as a good opportunity for a bit of tree shaking for a bit more profit. You then have a recipe for volatility which can easily knock the price down to the issue price of .015 for a period. This may not happen, but with a speculative share like this the odds are, imo, greater that it will than it won't.

Of course if there is good drilling news, this will drive the price up again. For those prepared to hang on, who believe it has a good chance of good results and meeting production targets and are in it for the longer term and not trading, well, I guess just grit your teeth and don't worry about short term prices.

All just opinion!