Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This is what happens, the brokers get a big order from a friendly client, so then they constantly work the price down until the PI's give up and sell out. The friendly client gets his shares cheap, and therefore goes back to that broker for his next deal.
Only way to beat this is to top up to your maximum whilst they are cheap, sit back and await the re-rate. It may take a long time though.
But the sp is still falling steadily. I last topped up at 4.2 and 4.3, think people are scared to buy in case Cap-xx have to do a placing.
As at 31 May 2019, the Company's cash position was approximately A$2.6 million.
Revenue for the year has been impacted by the rate of conversion of new business opportunities into sales, which has not been sufficient to overcome the shortfall in new orders from Spire, which as noted in the announcement of 16 April 2019, has been impacted by trade tariffs into the US. As a consequence, revenue for the year will be below current market expectations.
If they do a placing at or discounted to the current sp, then it will be highly dilutive.
CC
I can see the reasoning of a matched buyer and seller reducing the sp, but If some bright spark is dumping circa half a million shares at the end of the day in an attempt to control the price then he is onto a loser as he needs to drive the price very much lower in order to re-buy the shares he has dumped. It is a v dangerous game as one RNS could double the share price from here.
I've been looking at the RNS from 10th November 2017 for clues, as to where these shares may be coming from.
Well we have unnecessary Trading Updates issued by the company which are worded like a profit warning, including a cash statement that without pointing out any revenues or grants implies a possible placing. Together with this we have the Newlands buying every share they can at around 4p.
There is a smell here, and it is not pleasant.
Seems to me it is not just the broker assisting the Newlands, keeping the price suppressed.
That last RNS yesterday, the Trading Update, did not seem to have any new information in it. So why was it issued just 7 weeks after the previous Update on the 16th April?
Previous Trading update to that was 20th June 2018.
Following the trading update announced on 16 April 2019, the Company is pleased to announce that EBIT and EBITDA for the year ending 30 June 2019 are expected to be in line with market expectations.
Anyone know what the market expectations were?