Hello stranger! Good to see you back Shwmae. Hope you've had happy hunting elsewhere over the past few months. Think/hope you've got a good starting point here now & that you squeeze a decent return out of this one at last!
Agree that people will most likely be looking for a position from which to benefit when the placing is announced. Don't have time myself to chase 10% up or down, but if people do & make a decent return, good luck to them. Until we get some decent projections or revenue, we'll always be vulnerable & doesn't make life easy for those that don't trade. Would be nice to move away from the 4p base.
I do believe it is PIs selling that is causing the sp to drop back. It was always vulnerable when AB announced an open offer at 4p. Nobody can force the sp upwards if a PI is prepared to lock in meagre 5-10% percentage gains.
What AB is doing though is smart - he is basically giving existing PI shareholders an opening to gain an advantageous position. That will motivate PIs to buy now to gain a seat at the table, to a level that the PI wants to achieve in the placing also giving them an option for the 7p warrants closed to all others, and to underpin the sp (why would a PI sell below or near to 4p?).
Cheers DShox - I am sure patience (however long it has been tested already) will prevail. AB seems to be making all the right noises, let us hope ZEMA, the WB and others allow the steady growth of our company. That 500,000 trade in old money would have added a nought to the volume - certainly appears to have been a confident purchase.
That's fair enough. I'm probably a "medium termer" - long enough to suffer that legacy of MA's final year - the time for wincing was then. If one has absorbed pain and if they are still shareholders, it is because there is potential to recover those losses. Frankly if MA was still in charge everyone would have long since abandoned this investment and it certainly wouldn't have attracted an investment from Lexington. Regarding buys before news - I've seen it time and again on AIM. Some may be completely innocent. If I think about the share price action included size of buys just before Savannah Resources released its Rio Tinto JV news in Mozambique, then I definitely query the timing.
I had to wince at your multibag comment - simply because this for me and I know a number of other long termers need this to be at least 5-6 times where we are today just to break even. Those with deep pockets today may well benefit from the power of the placing shares, though I fear many long termers have been bitten already and may be reluctant to gamble more. I hope to have some cash, to pick up a few more, before Christmas, though I would hope we would get some news before this weekend. I would assume whomever picked up a half a million earlier today has called things right, though it is a bit of a suspicious buy if we get news tomorrow. In the meantime I need to keep the faith.
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