Hate being right on occasions like this! A little over a week ago I stated:
"Here's my tip (based on nothing but scientific gut feel - :-) ) - CR on the way and somebody in the know is getting out at these prices (to get back in at a discount). I know the last quarterly showed some good cash but BOP and operating system alone will set them back $1M plus. Drill team, accomodation, etc. etc. ...... "
One more issue with this is that, if they were on time with their drilling as per the last announcement; surely they could have held off 2 weeks and wait for the drill results (which we are to believe are virtually guaranteed to be positive given the location). Based on the timing of this CR, I suspect we are looking at further delays.
I also hate the fact that the small caps continue to do this without any apparent scrutiny from ASIC. Last week I stated it looked like people were getting out last week for no apparent reason which would allow those "in the know" to be dealt back in at a discount come CR time. If the CR is at a discount (more than likely in this market) it would be interesting to see who exited last week when I flagged this issue and whether these same folks end up taking any placement shares.
On the bright side, this may be a rights issue but, given what has preceded this over the past couple of weeks I seriously doubt that.
Lets hope I am wrong. .... Crappy way to start the trading week though.
TNP Price at posting:
2.8¢ Sentiment: None Disclosure: Not Held
