George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
So its been a week since the P3 results and we have all had time to weigh up the pro's and cons. The facts are that they tried to go it alone with a P3 (which is to be respected), however it didn't quite work out the way they hoped. The drug didn't fail. I'll say that bit again - the drug didn't fail. What it did do was create doubt and that is something the market doesn't like. We know that: 1. There has been some interesting positive results in the P3 trial. 2. Immupharma have been talking to potential partners. These talks will now likely be around how the split is going to work for either another P3 trial or an attempt to commercialise the drug. 3. There was plenty of interest and �10m was raised @ �1.44 per share. 4. The company have announced that they will be analysing the results and updating share holders over the coming weeks. 5. We are awaiting results of the extended trial outside of P3. Possible scenarios are: 1. Rerun of P3 trial in partnership with another pharma. 2. Partnership with another pharma to bring the drug to market. 3. Total abandonment of Lupuzor (very unlikely) Either way the market is reacting as it should. It has found a price that they are comfortable with until there is any further update. There is plenty still to play out here and the potential upside to the share price we already know is good, as it was at �1.80 prior to results. In the meantime lets hope the board don't dig their heels in and demand an unreasonable deal from any interested parties.
Interestingly VOG have the rug pulled from under their feet by the Cameroon government and they announce it at the end of the day. The share drop 20%. Maybe the rise here is because the deal between bow and vog is now off and the value has been passed back to us. Just a thought.
I cannot recall the last time the share price was so tightly controlled. It is impossible to trade it's been held between 28.75 and 29.25 for nearly two months. To me it shows that the market has no idea what to do with it. On one hand the agreement from the government could come at any time on the other COC might go for an all out buy out. Until either one of these two factors become clearer we are stuck here. It's still better that the 20p-24p under Kevin though! Wonder what he's up to now.....
this share takes an age to go up 5% but just a few trading hours to drop 10%. I promised myself that I would sell the lot as soon as I broke even which was 37p but I got greedy and changed my target to 40p. Oh well that serves me right. I will just have to sit and wait for another year before we see 37p again I guess. Not going to make the same mistake again though!
Another site has picked up on the news. Very strong news title though clearly blaming the government for the delay. I can't see this going on for long and there will be a compromise. The fact the share price has not dropped clearly shows that the market is also in a wait and see game.. http://journalducameroun.com/en/snh-indicted-blocking-etinde-gas-field-development/
I think it is important to note here that this news has generally crystallised what we all suspected for a long time. Indeed the market has been pricing this in for 2 years. What it has done is bring the reality out of the shadows and into the domain for any future investors. I seriously doubt Cameroon are happy to see this type of news out in the public domain when they are trying to get investors into the country. I suspect this will be resolved now much quicker than we think.
On the face of it this is bad news. The positive to take from this is that something is happening behind the scenes. There will eventually be a compromise somewhere to be had so we could finally start to move out of this range higher.