I recently posted about the sudden drop in the share price of Chrysalis Resources (CYS) before the stock was placed in trading halt and a subsequent announcement was released to the ASX advising that their drilling at Doolgunna West had found no results of significance. I commented on how the share price drop seemed fishy, I wasnt the only one.
In a 'Pure Speculation' article by Robin Bromby yesterday he posed similar questions and asked "Has the ASX noticed?". The answer is yes!
Today we see that Chrysalis Resources has responded to an ASX query. The query raised by the ASX goes somewhere along the lines of: Your shares have dropped from $0.26 to $0.20 just before a trading halt, we want to know when you knew of the information regarding the drilling results versus how long it took before the news made it to market. It makes interesting reading.
It does go to show that price and volume indicators still go along way in preempting news.
CYS shares last traded at $0.145, down $0.02 at 12:34PM AEST.
Showing posts with label Chrysalis Resources (CYS). Show all posts
Showing posts with label Chrysalis Resources (CYS). Show all posts
Tuesday, September 7, 2010
Friday, September 3, 2010
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.
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.
Wednesday, September 1, 2010
Moment of Truth for Chrysalis Resources
Chrysalis Resources (CYS) still remains in suspension and has done so since 26/08/2010 pending release of an announcement of drilling results on it's Doolgunna West tenements.
There has been so much excitement surrounding the Doolgunna area since the success of Sandfire Resources (SFR) that I think the results from Chrysalis Resources will be widely anticipated. The companies tenements are about 20km away from Sandfire Resources Degrussa project so it could provide an indication if the belt extends from Degrussa and by how much.
Keeping an eye out for this announcement will definitely be worthwhile and help determine a little if it is all just hot air...
For those holding CYS my only concern is the lack of share price appreciation in the lead up to the trading halt. Usually, if the news is good, there is a nice spike in share price and volume before any annoucements. In fact with this case the share price dropped on increased volume which makes me wonder.
There has been so much excitement surrounding the Doolgunna area since the success of Sandfire Resources (SFR) that I think the results from Chrysalis Resources will be widely anticipated. The companies tenements are about 20km away from Sandfire Resources Degrussa project so it could provide an indication if the belt extends from Degrussa and by how much.
Keeping an eye out for this announcement will definitely be worthwhile and help determine a little if it is all just hot air...
For those holding CYS my only concern is the lack of share price appreciation in the lead up to the trading halt. Usually, if the news is good, there is a nice spike in share price and volume before any annoucements. In fact with this case the share price dropped on increased volume which makes me wonder.
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