Is History repeating itself with AGQ?

There has been a flurry of activity with Arian Silver (AGQ) since their placing took place on the 27th of January. This followed from the suspension being lifted back in December when AGQ relisted back on the AIM market at under 2p a share.

With just shy of 114 million shares supposedly in circulation it’s difficult to understand the volume of trading taking place at the moment. Today alone, over a third of the shares have been traded and even the most educated mathematician would be scratching their heads at that figure with no news announced.

Those who remember the fiasco that followed New World Oil (NEW) during summer last year will possibly have noticed the signs of a sequel re-appearing. From the outskirts it would appear that the share price is under a squeeze following a concerted effort to short the share the last few weeks. Unlike the Hollywood box office success of the recent movie, The Big Short, most investors are not impressed when an attempt is made to manipulate a company. Especially when it’s purposely generated to profit those in the know against genuine believers in the company. If this is the case, then those responsible for shorting the share price will need to close soon to avoid financial loss.

With shares passing hands quicker than a game of hot potato there’s also a risk that the shares haven’t settled and a lot of people being caught out red-handed when the music stops.

But where there is risk there is also reward. At the moment it’s only started to surface that something is amiss and that won’t last long. Many profited greatly when NEW shot up rapidly and the same could be seen here. If shorters are the culprits, and need to buy back in, they might find PIs sitting on top of their shares looking for a bigger sale price. This will cause a dramatic climb in the share price from where it currently sits at nearly 1.28p today.

Within AIM there are always screams of leaky ships which could have caused the unexplained volume. This could possibly be a clear signal that new assets are on the horizon which will add additional benefit to those hold.

Like the early Spanish explorers pillaging Latin America of its gold and silver, the same can be seen here. Those who arrived early did well for themselves whereas later explorers didn’t enjoy such luck. History teaches us that there are winners and losers. Within a short window of time we’ll soon see who the winners are.

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