Still think I was downramping?

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Reillyblue

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20/06/18

10:31

Post #: 33819498
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Originally posted by SkinnySailor ↑

Why would anyone want to ‘dump’ before the consolidation lookatthis? Do you even understand how they work? Anyone who does would tell you a simple Consolidation alone isn’t a valid enough reason to ‘dump’.

A few posters (one in particular a number of times) have suggested they’re doing it to make it easier for them to raise capital in the future. Frankly I find this pretty unlikely, and have discounted it as just a chance to downramp. At 12th Feb they had Cash of $9.1m. Given Paris Creek was Cash Flow positive at the time of acquisition, this suggests to me that unless they have a further acquisition in their sights, they have no need to raise further cash any time soon.

Personally I think the stock is still flying under a lot of radars, as evidenced by its valuation vs it’s peers. If anything I think the consolidation to a 80-90 cent stock will give it greater legitimacy, particularly in the eyes of larger institutional players. With this in mind I’ve used the recent weakness over the last week to add to my holding. During this time I’ve noticed a number of tiny orders (sub $0.30 orders) going through after the close to swing the price down which suggests to me someone is trying to pull it down so they too can buy up.

I don’t think it will be too long before we get an update from Management, (hopefully around branding and distribution channel additions) which should give the stock some upwards momentum going forward.

All just my two cents. As always, dyor.

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Still think I was downramping?

LON Price at posting: 74.0¢ Sentiment: Sell Disclosure: Not Held
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Still think I was downramping?

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