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Speculators sore as rumours knock Eland's stock

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mwk
Frequent Contributor
The deluge of share trading that battered emerging platinum-miner Eland Platinum's (Eland's) stock on Tuesday could be attributed to the high proportion of South African hedge fund investors owning shares in the company, which generally trade on speculation rather than fact, an official at Nedbank Capital said on Tuesday night.
And when reports came out on Monday, saying that potential suitors for Eland had walked away because of the company's high share price, these traders jumped ship, causing the stock to plunge by 25,7% at one point on Tuesday.
Eland had put out a cautionary on April 22 saying that it was in talks that could affect its share price. It has repeatedly said since then that it was still under cautionary.
Hypothetically, if it were in talks for a possible takeover, and the buyer walked away, Eland would have to put up a notice on the JSE as soon afterward as possible, withdrawing the cautionary announcement according to the bourse's rules.
Full article...
http://www.miningweekly.co.za/article.php?a_id=110880
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8 REPLIES 8
vishal
Regular Contributor
Talk about bleeding on the JSE. Down 30% in 2 days. Ouch, i feel for the guys that bought at the top
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JohnnyCash
Super Contributor
RIP ELD! How crazy, its going to end up around the level mouthed by MNY! Ai, {Note to self} add all shares voiced by the Hogg to system for long or short, tis a good system...
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sm
Contributor
If ELD is such a dog why is there still "people" buying in at these levels, my opinion is that the rumour is fake to get the price down
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JohnnyCash
Super Contributor
sm, look around you, if you cant see anyone that means u r the one still buying. By u I mean them people who think this be a rumour to get the price down. The problem is this - ELD is only based on hype and perception at the moment so you dont have results coming out in 6 months time to evidence whether it was a rumour or not, cause the company has ZERO Turnover. So it is all greed & fear, @ its worst!
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Not applicable
head for the exits!this could retrace all way back to 1340
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Not applicable
you snooze you lose ;do your homework!
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Not applicable
bull*****;stock has no present earnings ,plain & simple reasoning
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mwk
Frequent Contributor
Another opinion:
Eland would make a good takeover target for a company like Xstrata or another large mining group because the production can be relatively easily double or treble production. Such a thing can't be easily done at an established company like Lonmin or Impala Platinum, said Investec platinum analyst Leon Esterhuizen.
"There is no doubt there is something coming in the junior platinum sector. There's still good value here," Esterhuizen said. "Eland at around R90 and Wesizwe below R12, all of these things are back in value territory as far as I'm concerned."
Source...
http://www.miningmx.com/juniors/959929.htm
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