RE: Placement - Whats the strategy19 Jun 2020 14:05
Spoke to my barker at HL and should hear root hem on Monday. You will get probably a few weeks to cancel your order, so just keep an eye out on the SP and act accordingly. I will ask for my full allotment of 5000 shares and he said you can apply for more if not oversubscribed. I think it's MUCh better to do this prior to DF. Should the price say go up to 100p on design news and then a few days later they release a placing at 40p then that would wipe off all profits. II's will always want a discount and this will be VERY cheap after design freeze. However they can't sell their shares till mid July so shouldn't see a massive retrace after DF.
I expect they cherry picked which II's they wanted as LTH's. Much better this way, bring on DF and some BIG contracts.
We are in a much stronger position today than we were yesterday. It's all about taking advantage of cash when it's thrown at you and expand accordingly. The cash would not have been there if they couldn't see a significant return on their investment.
HOLD STRONG.