RE: 161.8 % retracement29 Mar 2024 22:50
The plain fact is FCM shares have fallen from 18p to a miserable 2.8p in 15 months, a lot of folks are sitting on huge losses as a result, unfortunately this type of performance is typical of companies that raise via equity, once you set the ball rolling placing stock your shares become a rolling short, this has happened here.
I attend many investor events and most BOD's have no understanding of market shenanigans, this includes forward selling of placings, the rolling short scenario, Spread-bets and CFD's where individuals can profit from downside, market maker antics who often are 'naked short' - the list goes on. I have spoken to a number of directors in the junior resource sector who truly believe the market, in particular the company broker/advisors, are totally aligned to company aims and are working for shareholders, not so!
The moment any company speaks to 'The City' over funding the stock price will start its decline, it can take a 4-6 weeks to arrange a placing, forward selling occurs almost immediately, for example with FCM if MS was touting for funds around January these insiders would be selling FCM stock at 6p/5p/4p/3p and may offer him cash at 2.5p as an example.
I listened to the last podcast and was hugely disappointed that MS ended a quite upbeat session by saying 'the elephant in the room', funding, will be needed and kind of implied it would be equity - a big mistake. To me that statement explains the SP fall, he has been doing the rounds trying to secure funding.
So we will see, unfortunately the market will drop a price at will but getting the price back up is a Mount Everest event, I fear anyone in above 10p may not see their money back for a very long time, if ever, time will tell.