Thoughts about possible price suppression.10 Jun 2025 07:59
Just a thought I had in case some kind of price suppression really is going on, given that the share price is very flat and muted compared to how it used to behave prior to the local access permission being granted. That's very obvious when looking at a chart showing price action. So it's a possibility that an entity could be repeatedly drip feeding supply into the market.
Could it be that as well as the possible benefit of a low share price to help with a low ball buyout offer, share price suppression also helps to make a raise less likely as a benefit to an interested party?
A raise will usually mean an increase in the PI share base, and in a buyout situation this share base would ultimately have to vote on the recommendation of the Board, and whether to accept it or not. Or in the case of a hostile takeover, the entity making the offer would try to get the PIs to circumnavigate the Board in order to achieve a takeover approval. So presumably the smaller the total number of PIs holding shares is, the easier it might be to achieve this result ? Therefore making it difficult for the MATD Board to be able to do a raise might be a good strategy for an entity with an eye on a full takeover, rather than it buying say just Block 20.
And possibly this might be a big reason why MATD is keen to live within its means for now, and avoid another raise. And if it ever had to raise, it might prefer to not do it on the open market, but instead to simply increase Petrovis' share holding at somewhere around the current market price, so as not to significantly increase the PI share base. It's quite possible that right now there aren't more than 1,000 PI investors holding MATD shares - this would mean 1,000 people holding roughly 1.1 to 1.2m shares each - the rest being held by Petrovis and the market makers.
Maybe this is just my suspicious mind at work ? Lol.