Thursday, February 22, 2007

Follow-up on Candente

The trading action in Candente Resource Corp. (DNT.TO) over the past couple of days has been remarkable, with a 33% gain yesterday and another ~10% more today . While the charts were supportive of the notion that the potential for a breakout was there, they did not indicate the magnitude of the rally that is now underway.

The only news released by the company yesterday is that shares have begun trading on the Peruvian Stock Exchange. Daily volume of over 4MM shares yesterday was an all-time record for the stock. So it seems reasonable to speculate that at least part of what occured yesterday was a wholesale transfer of ownership in the company from North American to Peruvian investors.

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