ARIANNE PHOSPHATE INC. (“DAN”) Share price displays the potential to drop in half.
Arianne Phosphate has been trading in the $0.76 – $0.83 range as of late. The shares dropped dramatically in 2007 like most and then rebounded somewhat in 2011. Aside from the 2011 rebound they dropped again in 2012-2013 and then somewhat flattened out in its current range. Over the past years the company has managed to roll its shareholders back two times; once 6 for 1 and the second time 5 for 1. That is a total of 30 for 1 in rollbacks which would have reduced a 1,000 share holding to a paltry.33 shares. Of course, from a perspective, that is probably two too many rollbacks. The company packs considerable debt. From an investment perspective Arianne’s market book displays extreme weakness and appears vulnerable to drop in half. concludes that although the company has been able to inspire trading in the $0.83 per share there is concern that there are no bids to support trading in that range. At todays close Arianne had a measly 2,000 bid at $0.076, 10,500 bid at $0.75, and 3,000 at $0.71; after which there are only two bids. The first those two is 5,000 shares at $0.40 and 1,000 shares at $0.01. This sad market depth is perhaps healable but we will be suggesting that our Members watch from the sidelines for the time being, in case Arianne breaks through the weak bids and tests the support down at $0.40 or lower. Should you find a price level which you feel comfortable be sure to connect with your broker and get his or her opinion.