strategy for spp

I have been thinking about this overnight and in the light of yesterdays uptick to 4.7c, I think I have a strategy to make money from NSP...guaranteed!

At the last SPO in 2011 which was at 10c, the directors aggressively bought up NSP shares in the market in the lead up to the close. In addition, the Newsletter of August 2011 stated;

"the Directors strongly believe in the future of NuSep and have shown their support by actively buying shares on market and partially underwriting the SPO. As a Board we encourage you to participate in the SPO which closes on Friday 26th August 2011."

This "support" resulted in the price rising from 8c (20% below the SPO price) to 12.5c (25% above the SPO price).

The director will surely have to do the same again, won't they? If they don't then the following must be asked;

1) Do the directors no longer "strongly believe in the future of NuSep"?
2) Was the buying in 2011 the manipulation that was reported to ASIC by the auditors?

I think they will have to buy it up, either directly or through stooges.

Is this what drove yesterday's price up to 4.7c? Why would any one pay 4.7c + brokerage to buy $1,000 worth of shares when they can have them for 4.5c in a few weeks?

So if we'll see concerted "support", then we can sell our shares at 4.7c, or better 5c, and buy them back through the SPP at 4.5c!

If you have decided, like Kosenar, that you WILL NOT PARTICIPATE, then there's a real opportunity. If you sell your shares at 4.7c, then buy them back through the SPP, you'll make a quick 4% return. If you manage 5c, then a quick 11% is in for you. And there's some icing on the cake. If you bought your original shares at higher prices, then you'll get the tax loss in the current year (shame this wasn't done before June 30).

So if you manage to sell the $15,000 at 5c and then buy them back through the SPP, you'll manage a quick $1,666. It might be the only money you ever make from NSP.

As I am still undecided, this doesn't quite work for me yet, but if I decide I don't want more shares, I'll jump at it.