All posts and charts are for educational and illustration purposes only
Monday, July 10, 2017
Alliance Mineral - Sold Down on News of Share Seizure
Alliance Mineral - This share was down 14% closing at 0.28. The company reported that 72.3 m AM shares was seized from LVMA a company owned by the CEO and his wife. The seizure goes to pay a $7m debts to Grande Pacific(a company owned by Jonathan Lim's wife). When Living Waters transferred 46 m shares to Grande Pacific as a part of the same settlement many traders had believed that a new investor Jonathan Lim had taken a stake at 0.32 cts in the AM and that was a positive move. Today it became clear this was a part of debt settlement and not a `Big Boy' taking a stake. As a result, there is now a huge overhang of AM shares and if Grande Pacific decides to offload its share on the market to recover its debt , this stock will see selling pressure in the near term. There is a huge resistance at 0.30 and 0.32. This blog will only bullish on this stock above 0.32. Near term weakness could drive the stock down to the next technnical support at 0.255 and 0.21 in the near term.