RE: Re: Reality check27 May 2018 15:37
johnyhotrocks yet another poster making glib unsupported assumptions about me and continuing to refuse to debate genuine concerns and .
secret agenda? what might that be? do elucidate
nothing wrong in supporting a share price i think.as long as the fca would not view it as manipulation
no sign of support yet as price continues to fall.
not good for offering whet shares for future deals without causing dilution which ae abhors see extract from his 2nd march blogg
'Almost all smaller companies are too willing to engage in heavily discounted share placings as a way to finance their business. Thus, whenever the share price shows any sign of life, the Board (often having limited market experience themselves) will be easily seduced by a smiling corporate financier suggesting that now is a very good time to carry out a discounted placing - which the financier knows he will then be able to sell into the market at a premium. Money for old rope for the financier, but a value and morale crushing blow to all the existing investors who have been paying the market price for their shares. Do that too many times (and once is too many for me), and investor interest eventually dies, defeated by a Tsunami of discounted shares in issue. Thus, the short-term attraction of immediate cash for the small developing company, ends up depriving the company of necessary funding in the future, often leading to financial trouble further down the line. Any acquisitive company that does not engage in discounted placings, and restricts the issuing of freely traded stock to the minimum required to enable the company's development plan to be achieved, has a higher prospect of ensuring that the stock continues to attract investor interest - and therefore funding is ultimately achieved on more attractive terms for the company (i.e. at a higher share price), as well as rewarding existing investors by ensuring that their market purchases are not devalued by heavily discounted placings. One of the secrets to the successful development of an acquisitive stock market listed company, is actually to restrict the number of freely tradable shares to a minimum - within the bounds of any free float regulations. Naturally the business plan has to make sense but, taking that as a given, the stock market strategy should not be to issue shares like confetti, and to ensure that supply and demand favours an increasing price.'