Short Term Trading Opportunity

  1. 4 Posts.
    I believe there may be a potential short-term trade to be made in VRI Biomedical. The Bank of New York is sponsoring their level 1 ADR listing on the NYSE, which according to the company and their ASX releases is likely to happen within the next 2 months or so. The structure of the ADR means that the Bank of New York (as the sponosr) will need to buy shares on our market to cover any buying of the ADR in N.Y. It is common in ADR listings that the sponsoring institution may buy up to 15% of the tradable shares on our market prior to the listing. In this case, even if the Bank of New York where to buy 2% (approx 1,200,000) prior to the listing of the ADR then VRI could go for an enormous run prior to listing. The stock has been thinly traded (approx 20,000 p.d) for the last few months and there are only 30,000 approx shares for sale between $0.65 and $1. If 1 million plus shares where agressively bought on market then I think there is a good chance we can see the stock trade from $0.60 to $1.00+ on the back of the buying support. Anyway it is just a thought. I am long the shares and options and will be buying more shares during the week.
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