Market Scheming

Wednesday, April 13, 2011

Entry into GPR.TO (Great Panther Silver) - Tight stop, low risk / high reward setup



Note the buy volume increase in the last 2 days.  There are not many sellers, leading to swing lows being "protected" by the high buy volume.

Also note:

Other stocks I have been following and commenting on are: EDR.TO, FR.TO, AXR.TO, SBB.TO
PTM.TO, FVI.TO

All of these are up and some up substantially.  With leaders such as FR.TO (First Majestic Silver) leading the pack with a 12% gain.
I regret not getting into FVI.TO as played the last leg up and was planning on entering sometime this week. Even though FVI.TO is a solid play, there is greater political risk via elections in Peru


Why GPR.TO is going to continue up?

Look at the latest update Here below is a summery of the Bought Deal that just went through.

Great Panther Silver Limited Announces $21 Million Bought Deal Financing
Thursday, 24 Mar 2011 08:56am EDT 

Great Panther Silver Limited announced that it has entered into a bought deal financing with a syndicate of underwriters led by Salman Partners Inc and including CIBC World Markets Inc, Stonecap Securities Inc, Dundee Securities Ltd, and Stifel Nicolaus Weisel Canada Inc. The Company intends to issue 5,000,000 common shares at a price of $4.20 per common share for gross proceeds to Great Panther of $21 million. The Offering is expected to close on or about April 12, 2011, and is subject to regulatory approval. The Company has granted the underwriters an overallotment option exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the number of common shares issued pursuant to the Offering at the Offering Price. The common shares will be offered in all provinces of Canada, excluding Quebec, via a short-form prospectus and into the United States on a private placement basis.

And today......


Great Panther Silver Limited Closes $24 Million Bought Deal Financing
Tuesday, 12 Apr 2011 09:11am EDT 

Great Panther Silver Limited announced that it has closed the bought deal financing previously announced on March 24, 2011, with a syndicate of underwriters led by Salman Partners Inc. and including CIBC World Markets Inc, Stonecap Securities Inc, Dundee Securities Ltd, and Stifel Nicolaus Canada Inc., (collectively the Underwriters) fully exercising the over-allotment option, for gross proceeds of $24,150,000. 



Bought deal was completed at a price of $4.20 per share, and the underwriters had an opportunity to exercise there over-allotment option within 30 days, and they immediately exercised it.

Obviously the price being 3.84 didn't deter the underwriters, and since they were a lot closer to the company that anyone else, a minimum valuation of $4.20 would be expected.



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