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for clarity,
Once the broker (Shard Capital) contacts their clients on behalf of the company (EEE), the institutions and clients are sent an invitation and must agree to the market sounding where they are given the details of the share placing (2p)
The market sounding discloses the nature of the information as inside information and requests full compliance outlining that it is a criminal offence to trade, modify an existing order, or incite someone else to trade on the content of the placing information.
Such persons who break the insider agreement may find themselves in hot water if they break MAR but given the selling right down to the placing price you can be sure that someone was doing this or had passed on the information to someone else who then managed to offload their shares to an unknowing person.
This of course is all my opinion and I have no factual evidence of such matters.
ML
thanks ML, it does look that way, the murky world of those who took part selling down, but agree we don't know howmuch they've offloaded and if they still hold a sizeable chunk.
You can be sure that some of those who took part in the raise have sold a decent portion of their current stock from 2.5p down to where it was just before the placing RNS. How much of it is what we don't know but if they had a million shares in EEE prior to the Shard Capital phone call for example and were offered another million at 2p when the current SP was 2.5p then lots would certainly sell at a price above that knowing full well that the SP was going to drop to the placing price.
It's a dark art and I have different views on it given some of the placing shares would have been sold to traders or those who are not considered "sticky buyers" and would have sold whatever they could to make a profit and some want to hold the shares and build their stake in EEE.
I would say all the sells from 2.5p down to the day before the placing RNS were in on the placing - If someone is bothered to total up the volume sold over those days it would give you an idea of what has been churned through. Hopefully a good portion of the placing shares landed in sticky hands and hopefully they will hold for a greater return.
Given no real drop today or significant volume I'd say the sells are done for now until any rises are sold into for profit, which is obvious as the SP is now below the 2p placing price and all sells would be at a loss of 5% to that buyer.
ML
any ideas on if we need to wait for placing stock to churn as i suspect overhang to clear or has it been forward sold ? anyone with views on this care to comment.
Charts mean a whole lot more to me than the number of shares in issue or dilution and the chart for this share very clearly shows that the SP is on its way down from the recent highs.
To do a placing at 2p was very naïve and bordering on the stupid.
Traders do not need to give a damn about dilution. That is only a worry for a LTH - a long term holder.
Art,
You do realise that whether you were an existing shareholder or were planning to buy in, dilution should be a very big factor of consideration for you.
Based on your views being completely different to mine I’m not sure I can add anything of value to our dialogue.
I’m sure your investment will go well either way.
GL
ML
You are thinking from your own perspective as an existing shareholder. I was not an existing shareholder so dilution isn't a factor of consideration for me. My only consideration was the price at which I was going to buy in here.
From another perspective companies such as Empire Metals are dependent on Institutional Investors for funding. They should make sure that the placings are done at such a price to make sure the investors are happy to stump up these large sums. This placing will not make them feel very good - in fact they will look pretty stupid for a while.
When the share price was 1p last month I had never even heard of Empire Metals.
I now know they were previously Georgian Mining, who I was familiar with though I had never held any of their shares and anyway the less said about them the better.
I watch this rise after the high gold assays for day after day from 1p to over 2.5p. I thought at the time that this rise was being spiked by a lot of rampant posters though that was not the case. It was very obvious that with sporadic news flow the share price here would drop back. I was waiting for the share price to drop back to the mid 1p's at which point I was going to buy in but before that could happen the management did a placing at 2p, at which price I bought in. I thought at the time that this placing was at too high a price but I had already bought.
It now turns out that they have plenty of cash and didn't even need to do the placing. It is better that they do not **** off the Institutional Investors who have stumped up a whopping £1.7 Million only to find out on the day the placing shares are issue that they could have bought them on the open market at a cheaper price. That is just stupid.
*best*
Apologies.
ML
so let me get this straight, you would have preferred the company to not raise at 2p, let the company share price tank (your words), drop to 1.5p (random price) but yet presumably want EEE to expedite their work and generate value adding newsflow but in order to do so raise money at a lower price and thus increase dilution by 33,000,000 shares? circa 10% additional dilution...................
Sorry but that is a flawed view on what's bets for the company.
ML
Dilution is not a problem here. The market cap is low and there are not a lot of shares in issue. I was not an existing share holder.
It is unprofessional to do a placing at say 2p and for Institutional Investors to stump up a not inconsiderable amount of cash - £1.7 Million - if the share price is likely to tank - which is exactly what is happening here.
Art, no offense but you seem annoyed about missing a lower entry point than anything of real worry?
You could have got in at 1p last month, 1.5p 3 weeks ago, 2.5p a week ago - it matters little. If you're here LT then the £0.005p will make absolutely no difference. Empire will rerate significantly based on its future success or it won't. Focus on the fundamentals and not the incidentals.
ML
ART123……..the higher a placing price the better it is for Company / existing shareholders (less dilution) …..If you don’t understand this simple fundamental then stocks investing is not for you.
ART123…….we’re you not listening to the presentation (Q&A section) ? Diamond drilling assays for Eclipse are in the lab right now and Shaun is hopeful of results within next few weeks.
This is very poor management to get the placing price so completely wrong.
Huh are you mad? Placing at 2p over say 1.5p means less dilution
It doesn't matter a toss how good the prospects are. Drilling and assays are the only thing that counts with these exploration companies. I'm quite annoyed, as you can probably tell. 1.4p would have been a sensible entry price and not 2p.
To be brutally honest the placing price at 2p was bloody stupid. The management should learn their business. They are embarrassing themselves in front of both Institutional and private investors. And some of the management even bought in at this silly placing price themselves. Daft!
With no drilling or assays in progress this will fall, which is exactly what was happening to the share price before this stupid over-priced placing.
AJMO
Mm.. thought it would be buzzing here this morning??
Fankoo Market was definitely one of the words in my head but wouldn’t have guessed the other lol.. am sounding Lula right NOOB
Market makers mate,
And the suspense is killing me!! :o)
Ok.. at risk of making myself lol stupid. Most of the acronyms I get but I can’t quite figure out MM,s ??
Don’t you love the way LSE has had the headline share price for EEE at the stated 2p bid value for most of the day to make the stock show up as red, even though the majority of todays trades are buys at close to the stated 2.10p ask price value all showing in blue…..Favour for the MM’s ?