The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Thry must think it's a good opportunity and worth drilling, to spend the money trashing the SP in the process.
What other investors do in the run up and how the SP reacts is anyone's guess, probably a bit of everything.
I'm invested know the risks and looking forward to seeing the results.
Investing (loosely worded) in small caps, everyone is bound to get caught on the wrong side on numerous occasions but it's always better to wish you put more in than wish you put in less.
If a company isn't generating revenues, then they'll always be looking to raise funds, it's just a matter of when.
Funded drill coming up wishing everyone all the best.
Valid point, the bottom line is the company got the required funding (at the retail shareholders expense), the upcoming drill is paid for, let's see what happens.
All the best everyone.
The LTH have been shafted again, debt management and funding is always better to invest afterwards or get out before. People think management are aligned with shareholders but very few are in the small cap arena, it's dog eat dog mainly.
Another thing to watch for is what the company hides, they're very quick to tell you good news though.
Looking forward to the drill here
They can sell at any price and use any losses as a tax loss on future profits.
They've most likely made their money on the way down and bought the placement with generated profits.
From their trading update 5th December :
In addition, the Company is in receipt of a number of unsolicited approaches from potential investors and, in light of the findings of the costing exercise, is advancing these discussions while also assessing other financing options.
I take it didn't go well, definitely not for retail shareholders.
Makes me wonder if there's more to come from all of this.
The markets have changed, being a LTH in small caps is a waste of time and money.
This has an upcoming fully funded drill, that's either going to make or break the company for shareholders.
No jam tomorrow BS only play within your budget.
The bottom line is if the company does well then we all do well.
Transparency is key, I'd rather see poor results than no results however bad they might be. Who knows might have even bought more, if you can see the turnaround potential.
I think something like, short down from the 6p area to below 2p, make a decent profit buy the placing shares from the profits and sell the new shares at whatever price, if it's a loss then it's marked down as a tax loss.
Taken from another poster on HE1, it could easily have been written on here:
...sell the dream, pump the price, hype the prospects, hook the punters then string them along as long as possible with the promise of jam tomorrow...