Re: question for FarEnd 🤔17 May 2018 15:14
Quite simple Suzy, no change of opinion. With an additional 30,000,000 shares liquidity is not a problem that's why the spread has been significantly reduced, that in turn encourages traders and gives them the confidence to take a punt or exit. If volumes increase it can be matched by an increase in the SP. This is not always the case of course, but as the initial drop in the SP has IMO been overdone, this is why I said I expect a bounce next week. But once these shares have been 'processed' and in the absence of further news I believe they will retrace back to the issue price and if no positive news is forthcoming beyond.
I believe whoever backed this placement will move these shares quickly, afterwards BEM will return to what we regard as the norm, i.e. no news, low volume, large spread.
There's been nearly two days of trading since the subscription announcement and just look at the volumes already and the SP has even edged up slightly.
That's my take on it hope you understood my reasoning, remember this is the AIM even harder to understand when things happen.
I'd be interested to hear from other investors if they have a view, GLA.