Not really LatAm, but a good lesson in why self-fulfilling prophecies are not and never will be my bag. When the famed Jim Dines pumped the hell out of rare earths to his mega-subs list a couple of weeks ago, the self-fulfilling prophet did this to the company share price of one of his picks, Avalon Rare Metals (AVL.to):
Management were quick to recognize the good fortune that had plopped into their lap in this PR dated May 27th that said amongst othe things;
"....management believes that this unexpected increase in trading volumes is related to the recent publication of some independent commentary on the rare earths business."But those inside the company also know a gift horse when they see it. Here we see a nice bit of optioneering by Donald Bubar, President of AVL.to, who exercised his 69c papers to make room for another batch and has already dumped 25k of those recently exercised 100,000 options onto a willing and liquid market (and what's the betting is about to dump the other 75,000?).....all thanks to a newsletter writer and his flock.
Avalon Rare Metals Inc. (AVL) | As of June 12th, 2009 | ||||||
Filing Date | Transaction Date | Insider Name | Ownership Type | Securities | Nature of transaction | # or value acquired or disposed of | Unit Price |
Jun 12/09 | Jun 03/09 | Bubar, Donald Stephen | Direct Ownership | Common Shares | 10 - Disposition in the public market | -2,000 | $1.690 |
Jun 12/09 | Jun 03/09 | Bubar, Donald Stephen | Direct Ownership | Common Shares | 10 - Disposition in the public market | -3,000 | $1.600 |
Jun 12/09 | Jun 03/09 | Bubar, Donald Stephen | Direct Ownership | Common Shares | 10 - Disposition in the public market | -9,600 | $1.580 |
Jun 12/09 | Jun 02/09 | Bubar, Donald Stephen | Direct Ownership | Common Shares | 10 - Disposition in the public market | -10,400 | $1.700 |
Jun 12/09 | Jun 02/09 | Bubar, Donald Stephen | Direct Ownership | Common Shares | 51 - Exercise of options | 100,000 | $0.690 |
Jun 12/09 | Jun 02/09 | Bubar, Donald Stephen | Direct Ownership | Options | 50 - Grant of options | 100,000 | $1.41 |