Chrysalis Resources - Writing on the Wall?

I posted about Chrysalis Resources (CYS) when the company still remained in trading halt on Wednesday (01/09/2010) and briefly mentioned that I was wondering if the pending drilling results were to be negative considering the sudden drop in share price the day it went into trading halt.  Take a look at the trading data below:

Date              Open    High     Low    Close   Volume


02-09-2010 $0.140 $0.160 $0.140 $0.140 1,733,132

25-08-2010 $0.230 $0.230 $0.200 $0.210 686,500

24-08-2010 $0.265 $0.270 $0.260 $0.260 44,230

23-08-2010 $0.270 $0.270 $0.260 $0.265 130,502

20-08-2010 $0.280 $0.290 $0.255 $0.260 215,007

19-08-2010 $0.295 $0.295 $0.280 $0.280 132,000

You can see that the stock was slowly drifting down in the lead up to 25-08-2010 which seems nothing out of the ordinary.  Suddenly, on 25-08-2010 (late afternoon trading halt) the stock dropped $0.05 on volume of 686,500 units raising my suspicions.

Whilst it is hard to react to daily share price movement if you are not sitting at the screen all day it does go to show how important having a stop loss in place can be.  Anyway, on 02-09-2010 the company announced that "the assay results of our drilling at the 5 target areas have returned no results of significance. At this stage the Company has no explanation why the assays have not returned any anomalism."  Back to the drawing board.  The shares were punished and closed at $0.14.

At least the shares have slightly rebounded to $0.15 today.


Neighbour Sanfire Resources (SFR) remains it it's own trading halt pending a resource upgrade announcement.  I think that this news has been factored into the share price already and the upgrade has been expected so I dont think there will be too much movement in the share price unless it is a blockbuster upgrade.  I did read somewhere lately that if OZ Minerals were to make a move on Sandfire Resources that it would have to be sooner rather than later because the way that Sandfire Resources is upgrading resources the share price is only going to appreciate and make it more expensive to acquire.