Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
The shares won't hit the market. They will go to RF to dribble sell over the next few months. It will probably be more like 400k or 500k shares.
However this realisation might spook the market further and cause a 5 or 10p fall.
But in the long term it makes no difference to the worth of the company.
The explanation I can offer is simply that there is continuous selling pressure from RF. The MMs need to drop the SP to entice mroe buyers so that RF can continue to sell.
This is what some call the death spiral.
I have no real idea of what RF are actually selling but many of the big 10k type trades must surely be thiers.
The comparison was purely with the mechanics of the deal, not the nature or type of company, nor indeed their perceived prospects.
Any organisation which has a programme of persistent regular selling will cause a slide in the SP.
Yes, it's a win for the company - it needs the cash. Currently it's a lose for shareholders, because of the increased dilution of new shares.
However, there is the opportunity (as after most fund-raises) to buy more shares cheaply.
In the long run it may make little difference to the eventual worth of the company. Why worry?
Continued:
Yet at some point we have to buy. It's the way to stop the SP drift while we wait for meaningful news. The only question is - What is a good buy price?
This share offers good value now, but better next week (perhaps?)
At some point the SP will be irresistible, and I'm sure that will be well before 50p.
How is this win-win? GDR has dropped from 28p to 12.5p in six months. Notice on their chart a few short lived upward periods. SP has now lost 55%. I don't know anything about the company (GDR), but any mirror performance here would be a disaster.
We can see here that any buys are being mopped up by RF, who still have quite a lot of shares to sell of their first batch.
I really like the potential of the SAR pipeline, but the short term prospect for the SP, for me, outweighs this potential. Why buy this morning when the SP will be less by 4pm? Why buy tomorrow when the SP will be less next week?
I'd decided £11 was my buy target weeks ago. So I doubled my holding on Friday, expecting a further slide!
But then botbot comes to the rescue with his much bigger sell!
How unfair investing is. We can't guess which way the market will turn, so my advice is - make a plan and stick to it. CCL will rise or fall on any given day, but you'll make money in the long run.
Freetrade Vs ajbell.
The bad thing about freetrade is that you are trading blind on the free account. They don't ask you to agree a set price. Ajbell give you 15 secs to execute once price quoted. You can see live price change at the same time. But it's 9.95 or 4.95 a trade.
Now for something completly different. I was amazed to see the Ocean Majesty in port at Lerwick on Saturday.
It brought back happy memories of my first cruise over 20 years ago, and was what got me hooked on cruising. I remember the ship as being rather old at the time, and thought it would be scrapped when Page and Moy were taken over.
Not so. It's now 57 years old and still going! I bet none of the current Carnival ships will ever last thtat long! I won't be around to find out.
Anyone remember this name?
Back in 2014 Sar had an equity swap arrangement with them (which was terminated early).
Sar is no newcomer to this type of funding arrangement. I didn't like it at the time, and was glad when some normal placings occurred later.
During the time of the arrangement the sp dropped by about 35%, but subsequently increased again after good news. I don't think lth's need worry if this happens again, but there is still the feeling that the likes of RiverFort are the Wonga of the investment world.