RE: SBTX7 Jun 2023 12:41
Cheers Elrico, yes that is a bit brave although I've only put in a very modest sum. What I can easily afford to lose, not saying I want to mind. Yes in truth I did pull out very heavily and much quicker than I originally let on, as didn't want to be branded a troll.
Moved a lot to safe divis stocks plus some defence stocks and the yields are indeed rosy. As you know I had an expectancy of a much shorter timeframe than proved to be the case, and when faced (after hanging on a good time) with that reality took my exit. Time is money , and its a point which always gets missed.
I look at things thinking "how long will it be till before this investment returns enough profits to either give decent dividend or capitol growth and preferably both". Believe this is a valid point on this stock.
However if it is SOH or another very large holder offloading , it does throw some new questions into the mix.
Clearly size of pot to sell which only a fool would initially disclose, has the major bearing. You are right about the previous share price drop, caused when the big holders became aware (phoned by broker), that a lot of discounted stock was coming onto the market. They then sold current holdings and bought the cheap stock. Rest was history.
However if its an institutional holder, they are likely to think twice about selling sub 9p (original buy price). However if its that Savvy entrepreneur that we all love (SOH). Those bets are off as he really still has an enormous holding which cost him nothing. He will rightly claim hes acting in the best interests of OPTI shareholders, if he after many years of company stagnation is going to raise some very serious sums and throw caution to the wind (and SBTX holders onto a bonfire), by launching a very expensive publicity campaign for OPTI products. After all his shareholders might think they have not much to lose, as otherwise its highly likely that he will be back here in another year selling more stock to keep opti lights on, and before sbtx has firmed up a serious income stream or three. That really wont be good news either.
If its a modest amount being raised buying now could be pretty shrewd, but I feel a bigger risk than GKP.
I'm certainly keeping this stock on my watch list and radar .a key driver being when a decent income stream will actually be generated. Best of luck to all the long term (and new short term) holders here.
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