Alecto Minerals PLC (LON:ALO)‘s stock had its “speculative buy” rating reiterated by investment analysts at Beaufort Securities in a note issued to investors on Tuesday. Alecto Minerals PLC (LON:ALO) opened at 0.865 on Tuesday. Alecto Minerals PLC has a 52 week low of GBX 0.75 and a 52 week high of GBX 1.53. The stock has a 50-day moving average of GBX 0.87 and a 200-day moving average of GBX 1.16.
Just from anecdotal evidence this year yes I would expect the movers and shakers in the know to start to move in or out during Q2 2015. The drill season begins in November and ends in June so by the time Q2 2015 comes around they will have have had 5 months of drilling. Even though by then probably only half of the samples would have been released as assay results to the market I would be astonished if CEY by this point didn't know which way their investment was heading. Either stick with their current investment or pump another $11m for a larger stake.
As such I would have thought that at some point during Q2 2015 ALO and by turn SAV will have an understanding on which way the wind is blowing and will set their strategy accordingly.
I think people are forgetting a couple of things here. Firstly as per this mornings RNS:
'Under the terms of the conversion, Savannah has agreed that it shall not, at any time prior to 4 October 2014, make any transfer or disposal of the new Ordinary Shares except through the Company's broker and that any such transfer or disposal shall be effected in accordance with the reasonable requirements of the Company so as to ensure an orderly market is maintained in the Company's Ordinary Shares.'
So no off loading by SAV until October at the earliest. And secondly, they won't sell them in October, if ever, as we'll be in the next drilling season by then with CEY cranking it up another gear as it will be their last drill season before deciding if to commit to another $11m to ALO to buy a larger stake in Ethiopia.
I would expect that come October we should be on a firm upwards trend so I can't possibly see SAV selling any until the picture in Ethiopia becomes clear which, I would presume on current evidence, won't be until this time next year at the earliest
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