Hey Catholic, watch for the capital raising and funding announcement and price, and look at who the institutions and brokers are who are being offered the majority of stock, because it will be them selling now, knowing they will pick up cheap stock after they have driven the price down for a raising. The funding announcement should settle your nerves, and probably allow you to buy back in at 16 cents or so.
After the funding announcement, EAR will rise from there, no doubt, after the funds and brokers and their blue chip clients are set. I've seen it happen a thousand times over the past 20 years. It is a form of market manipulation, for sure, but the authorities cannot do anything about it, and so year after year the same thing happens to lots of stock - rinse and repeat.
You will also probably find that NST are being offered stock in the capital raising, and with an average of about 32 cents, they could probably reduce that 18c or 19c or 20c depending on the price of the funding raise, so why wouldn't they wait, it's a no brainer for them (unless of course, they are the ones doing the currently selling, for their own reasons - who knows).
I doubt NST are selling though. For NST it might depend on what value they place on the processing plant and ancillary amenities, as to how much they participate in a capital raising. If they go all in, then we may find they end up with a seat on the board, which personally, wouldn't be a bad thing, though others may disagree.
I'm waiting for the funding announcements before I purchase any more stock, because I want to know what price everyone is pitching at. It will (probably) stabilise at that price for a while after the announcement, then I will pick some more up at around that price. It could be 12 cents, or more, or less - so I'm finding it more prudent to wait.
Just some thoughts.
All the best.
Gw
EAR Price at posting:
16.0¢ Sentiment: None Disclosure: Held
