RE: High Risk Business12 Dec 2019 14:44
I am not sure that many on here understand the consequences of a four-fold increase in the number of shares in issue (mirrored by a quartering of the share price - funny, that.. ).
Institutional investors will have different client bases and different risk profiles, but I believe it is safe to say that many would be more than happy to present their investors with a 100% return; indeed, many would cash in well before that. Of course, the dumping of an entire large holding is unlikely to be achieved at a given price, such a move would precipitate a drop in the share price by itself, but to corrupt an old adage - if you are going to panic, panic first!
Any jump in the share price is likely to be met by a sell-off, after which a yo-yo effect will be set in motion. There are now simply too many shares in issue for any hope of a short- or medium-term increase in price.
I remain mildly optimistic about the future for H & W, purely because politics always trump both economics and common sense. As for Islandmagee, I fear the worst. The blatant disregard by the board for (self-imposed) milestones and the accompanying lack of communication to the market are, to my mind, unforgivable. In fact, I believe that these should have regulatory consequences for the directors responsible in any company.
Yes, I am bitter at sitting on a 50%+ loss here. I continue to hold, as I still see this as the better option, but I rue the decision not to bail at a slight loss when the H & W news offered a brief spike (not to mention my finger not falling on the "sell" button in January...).
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