Canada21 Jan 2024 12:39
We need to quit the uk and head to Canada! The below is from oilman Jim taking about placing differences in the uk and Canada
commenced coverage of Pulsar Helium in the International Letter on 26 November 2023 at C$0.20. It hit C$0.44 just six weeks later, notwithstanding a placing in between at C$0.23. This is the sort of move no longer being seen in the UK with these plays. One of the reasons for the superior performance is that pursuant to Canadian laws, all securities issued in the placing are subject to a hold period of four months plus one day. Similar, but longer periods apply in the United States. If you’re UK centric and want to keep making money in the markets, expand your focus to North American.
To understand why it’s stopped working in the UK, look at Helium One Global (HE1.L HLOGF 9KE.F). These London companies now have negative holding periods, where the placees are selling before the placing, driving down the share price and in the process generating huge and guaranteed profits. The shares received in the placing are regarded as junk and since the surplus shares have been acquired for nothing they’re simply dumped. This greed is killing the golden goose for UK directors, brokers and PR folk. The companies are going to have to start making it on commercial merit and not just live off endless placings.