Member Info for eldorado1909

I am not concerned about churning placing stock. My concern is that the placing is passed. Also, the lowest daily close was 8.7, almost 10 percent above the placing. I don't get why people seem to think that its only once placing shares hit the market that the placing is priced in. The information has been out there for a while, yet the market is still valuing this above placing price, and as of now its moving up from the recent low. No doubt there will be flippers, but this is only a 13m MCAP company (post-placing), the flippers could be cleared in a matter of weeks if the market really got excited and people started chasing the bid. If as IG thinks half the placing will be flipped thats 4m, about 200k was sold today, yet has the price cratered? At that rate the whole churn would be done in 20 trading sessions, and of course, there are going to be days with more interest following RNS's where a significantly larger proportion of the placing shares could be sold. IMO if the placing passes then a nice movement at least back up to 15p where it was trading till recently is very likely.

This is true IG. However, the fact that they managed to raise 150% is a massive vote of confidence for the market. It's effectively raising capital at a significant premium to the shareprice when taking consideration of the dilution and expanded MCAP at 8p. In addition, despite this massive dilution, which has already been priced in, the SP has not dropped to the placing price. All of these things suggest to me that the only siginicant risk here is Sister. My decision is whether its worth the risk of holding through the vote. Right now I am torn, because I managed to get in right at the bottom of the recent dip. I don't think its guaranteed I will be able to get back in at the same price after the vote has passed.

Got a sauce on Milton taking the placing? If thats the case there's 15 percent in one go opposed to 23.5 for sister. Big if true, means its effectively a done deal.

Whilst what you are saying is correct, in the sense that generally a dilution would not be associated with a rise, so many people have been waiting for this to sort out its financing, and the potential target is so big, that it *should* smash through the overhang just like MATD did. This reminds me a lot of there, similar level of excitement in the market, and it hasn't really gone anywhere near placing price before rebounding, its been 10% above the whole time. Lots of people are holding off buying in until after the placing, and the bid may well get chased up very rapidly because of the FOMO. For me though, the risk is sister. If they manage to vote this down - which I don't think they will - it could be an absolute bloodbath.

Yeah, but sister own over 20 per cent, and lots of shares are held by PIs in nominee account, who are very unlikely to make the effort to vote. There are enough other II's to cancel out their vote, so I just hope (and am banking on) them voting it through. Could get pretty funky if it gets voted down, who knows what the effect on the SP would be. You can make a lot of money on AIM, and I am significantly up this year, but this game is tough. So many things can crop up to spoil what at first sight looked like the perfect trade. All this being said, if it is voted through I see big returns here.

A position her but a little concerned about the sister issue.

By what went on today. Assuming there were some largish sells because we looked primed for moving through 5p this morning.

A matter of time till it breaks above 5p and is away. Placing shares holding it back for now, could be tomorrow, could be next week, could be in a month but it *will* come whilst the catalysts remain in place IMO.

Those expecting to get in at placing price are going to be disappointed. Bid is already at 8.5 and I expect this to perform similar to MATD following the placing. With funding assired the potential prize is simply to big for this not to rebound. All IMO. Was in MATD frok early feb and expect a similar return here over the next few months.

The 1 million share purchase as my buy signal. Very confident this will rise significantly into the drill, limited downside from this level IMO.

Indeed, feels just like being in JOG a few months back.

Thing holding this down is the chucky sells from the placing. Once they dry up this is only going one way. This is like JOG at 180.

You're not fooling anyone here so give it a rest. The fact you're so desperate for a lower entry should be a signal to everyone to hold. "not looking god is it" What investor who is sold out and isn't interested in coming back in talks this way. It's laughable.

0.12 on the bid is a tough nut to crack. Once through I reckon we will face similar resistance at 0.14-15.

The sentiment of existing shareholders is not important. It's new shareholders that matter, and new shareholders are more likely to pile in after a placing because it means they will not be caught out by one themselves! The only reason I hadn't bought in here previously was because I was waiting for the placing to be out of the way. Now I am waiting for the price to settle down.

Good for a sustained rise coming out of the bowl formation.

Is almost 100 percent up from where it was in April. In contrast, UJO has only done 25-30. A further rise is a certainty based on what is going on there IMO.

All my cash is in an ISA and sheltered from tax. Presumably this means that I can't take part in placings?

How do you buy shares in a placing? Is it just a case of making an order with your broker? How does it work?

Take it this means you're loading up at these levels?