Monday, June 18, 2007

Osisko Exploration (OSK-X)

I'll turn my attention today to Osisko Exploration (OSK-X). It holds a 100% interest in the Canadian Malartic gold deposit in Quebec. I've dabbled in this stock on several occasions in the past including twice in the last two trading days taking advance of its relative lack of liquidity.

As you can see in the 1 year chart below, it almost completed another 'saucer bottom' intraday today

before dropping to $12.76 at the end of the day:

On June 4th, Osisko announced a two-for-one forward split of its common shares in the form of a stock dividend. Based on that announcement, shares of Osisko as slated to commence trading on an ex-dividend basis as of June 19th which happens to be tomorrow.

I'm thinking that Osisko's share performance to date was linked directly to the lack of very active trading activity which resulted in relatively big gaps in its bid/ask prices so it should be interesting how tomorrow's stock split will affect the share price and trading activity.
Typically, stock splits are beneficial in the long run when the share price is near record highs but in this case, I'm a bit skeptical of its benefits in the short term so I decided to get out today and see what happens from the sidelines.

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