re: and the west australian newspaper
Overheated punters get fingers burnt
SPARE a thought for the myriad punters who piled into junior Perth explorer Eagle Bay Resources on Monday on the back of promising results from its Myall Creek gold project, near Whyalla in South Australia.
Released last week, the results drew little attention until the weekend when an Eastern States newspaper ran a yarn heralding the find as an Olympic Dam-style deposit potentially worth $3 billion.
The story sent the stock rocketing as much as 14.5¢ to 21.5¢ on Monday, earning Eagle Bay a speeding ticket from the stock exchange, before a trading halt was called.
The company subsequently blamed the run on "exaggerated interpretations" of its results and said it had never spoken to the paper in question.
Inevitably, punters ran screaming when trading resumed yesterday, sending the stock tumbling 9¢ to 9¢ as more than 38.6 million shares changed hands.
Happily for some, the stock is still trading at twice the levels it started at last week. As they say, buy the rumour, sell the fact.
September 17, 2003
EBR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
