I have been writing about Oroco Resources (OCO on TSX) recently. It is my largest position. Since I wrote about it last year, the price has gone up significantly. I also wrote about it in the newsletter, Ultimate Value Finder, which I no longer write.
I am not going to write a thesis here because you already know it if you read my previous posts. What I will write here is that last week was very important from a technical stand point. The company closed a private placement.
Orocoe first announced its intention to do a private placement in October of 2017. This is 7 months ago. This entire time, the private placement was just around the corner. Consequently, serious buyers did not feel like they needed to go to the open market to get shares because the private placement would provide them. And even with this, the price managed to go from $0.04 to $0.17.
Now that the private placement is closed. If they want shares, they have to get them from other sellers and there aren’t very many of them at these prices. The moment we get a semi serious buyer, the price will be in mid twenties or thirties.
Also, right now the sellers know as much as the buyers. They know that Santo Tomas Copper Project is massive. They know it is worth a lot of money. They also know that buyers want in really badly so they are not too eager to sell something for pennies per share when it could be worth multiple dollars per share.
Disclosure: Long Oroco