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Hi all,


I cannot see how the drop is linked to the fundamentals of SDL - we are no smarter about anything (maybe that is the problem)!


GBG also dropped to $1 (0.99). Like SDL it has not released any news for a long time and is now 1/2 the value from its high. I am still suspicious about the way their SP are still moving in close correlation to each other. Maybe just a coincidence.


the significant drop at the close yesterday was because of the 1.3 million share placement @ the closing auction. otherwise, the stock would have closed @ 0.38/.385 which would have been the next support point from 0.365. this seller appeared at the opening auction as well and so i suspect they were shorting the market and were spooking it to get the best result.


personally, i would look for a few things re short term SP movement: if SP closes above or @ .365 it might be safe to call a potential upward move back to low .4's where its home is for the short term. this is most likely if DJIA does not break 12750-12800 and XJO does not break 6100 support levels. If the indexes break support we might see a true retracement back to .295 where SDL hit during the August 2007 correction :eek:.


the problem is, without any expectation of news until the end of January (quarterly report) and March (possible resource estimate if drilling has gone ok) many will sit back and look for absolute bargains in SP to invest in SDL or get some short term gains trading it.


:2twocents


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