LONDON (AFX) - Chaco Resources PLC said it is proposing the reverse takeover
of two Paraguayan companies -- Amerisur SA and Bohemia SA -- from Candey SA and
Daniel Sztern in exchange for 27,322,404 new ordinary shares in the company.
It also plans to raise up to 750,000 stg before expenses in a placing of
36,585,365 new ordinary shares.
The company's shares were suspended on Sept 3 and it said it expects this to
be lifted today. It has called an EGM for Nov 15 to approve the acquisition and
placing plans.
Amerisur holds two oil and gas prospecting permits in Paraguay and is the
registered applicant for exploration and exploitation concession contracts over
the same permit areas. Bohemia holds registered applications for an oil and gas
prospecting permit in Paraguay and for an exploration and exploitation
concession contract over the same area.
The exploration areas covered by these three applications comprise a total of
approximately 48,000 square kilometres of the Curypayty and Parana Basins.
Chaco said these basins extend respectively into Bolivia and Brazil, where
commercial oil and gas production has been established for many years from
similar geological sections.

Question for all you regulars,if good news comes out on any share and the price jumps significantly,does it go up purely on investors buying the stock or can market makers push the price up based on the potential of the company? Just curious to know.Great times ahead for chaco, fingers crossed.

Does anybody know where these 8x500000 sells are coming from.?

pisces, the sp responds to reflect the market's view of the cap. value. It is not a perfect correlation so there are always going to be times when the market has not caught up with events. You'll see on this thread that a few of us have been saying for some months that the market has not been crediting Chaco's mgt. with what they have achieved, let alone what they might achieve in the near future. That could be because of a number of reasons relating to where Chaco came from. I remain convinced that this is a once in a decade stock, just as Cairn Energy (CNE)once was when it stood at 30p. Although that took some patience to rise to near 20/share, maybe CHP can get to a 2b+ cap value a little faster.

not fully sure but the price set by the mm's due to the demand of buy and sell. suprising how little this has gone compared to vega (veg) where there is liitle activity but still a rise.

and how is it some have the bottle to sell such large holdings while others are buying large holdings, its a strange old thing, the markets! id be thinking to myself 'this must be good if people want to buy such large numbers!'

Can't complain but a little boost now would round off the day!

Kivver
There's an old saying, "Plan the trade and trade the plan". The plan always includes an exit strategy which for may institutions and PI's is reaching a set price or set profit margin on the trade. Large holders may well happily trim their holdings and lock in a bit of profit after a 2.5 X rise recently.

WDIK

sd

cheers sd, have you an exit plan??? surely if the announcement comes everyone is talking about this should go higher.

Pisces,

Two points.

Market makers need to " balance their books ". On a day such as today where there are a mass of buyers, they themselves get short of stock by overselling.
To keep in balance they increase the price to bring out sellers.

The large sellers today are probably some holders who recently subscribed at 11p,
looking at a quick 50% profit.

Hope this helps.

Predateur

Kivver

Exit plan? lol!

I have a 15% trailing stop loss in mind on every share - which rule I regularly break if I "believe" in a share. Very wet and, over time, probably less profitable than a strict stop loss policy. But with some shares like PSG which I hold it's going to take 1 to 3 years to make good and the price is simply too erratic whilst waiting to have much of a policy. However my new year's resolution was to set an absolutely strict stop loss of 20% including dealing costs and spread on any new acquisition henceforth - we'll see if I stick to it!

Look at the stick I've recently received on FAO thread for turning over my new leaf! Couple of dogs have ticked up since I sold them in January, but my reinvestment of the net proceeds is up 17% across 3 stocks against 4.5% if I'd stayed with the 4 I sold out - seems to prove the point somewhat.

BTW what's yours?

sd

BTW if those 3 large T trades were placed early in the day, they could well all be buys. Mid price did not rise to 16.25p until after 9.00am today. It also makes mnore sense for buys rather than sells of this magnitude on a day like today, exit strategy or no.

sd

you seem to have a plan that is working SD and you cant ask more than that. I had a theory once that stop losses were not really worth it but i have paid for it since. Still holding bprg and cyh at quite big losses after being well up at one time. As for my own plan, i look at each share on its own merits, have quite a few i intend to hold for the long term usually fste350 stocks or long termers like wlf or azm. As for shares like tag or chp, you have to play it by ear and see what the news brings. Lots of posts are saying saying they are in for the longer term, will have to wait and see.

From the UK Analyst

Chaco Resources shares rose 2p to 16.525p after the Independent published a positive write up on its prospects over the weekend. The newspaper said that the company awaited news on whether it had been granted an exploration and production licence for Colombia's Primavera block and that word was that a decision was imminent. Should it secure the block, the newspaper said that the group's shares may go a lot higher. The word in the City is that the shares (which have soared from less than 2p) could hit 200p.

I would be happy with 20p+ this week!

I'm happy with 1 in 5 years time - call me easily satisfied if you will.

sd

Good luck again to all holders!

Now at 17p bid again, will be interesting to see if we can breakout from this price as this would take us to unknown territory hopefully pushing the price up even more before news comes.

The usual talking it down now going on elsewhere - probably by those who haven't done their research, have only just become aware of CHP and have missed out on the early activity following recent newspaper articles.

Sit and wait I say!

Wonder if all those 500000 sells are from institutions topslicing, price has held up well considering, or was it being held back because they were lurking in the background, however now they are out of the way lets head north again.

Good call pisces!