yes HC, there is a lot happening behind the scenes for sure, and you will never know even a part of the true story.
Control will stay with Boris.... it seems.
I just looked at it in a simplistic manner. One scenario.
Quite a few what-ifs.
Regardless of SP over the last 12 months, if you claim a 7cps NTAB, then why flog a massive amount of shares at 1.2c ? That is bad for shareholders fundamentally.
The positives for ordinary shareholders are that the company survives, to chew through more admin fees for a short time and make more losses. Like European banks and debt-ridden governments.
The day of reckoning is put off. But it will come.
When you have a company pre-occupied with control and share shuffling, and not making money, it is bad for shareholders..
If you were smart-money and you KNEW what the liquidated true value of SXX was, say 4cps and you bought at 1.2c, while everyone else was crying "who would invest here etc" and you had a Plan.. just as cunning as this move of Boris... who is to say you could not make money.?
I would not as a small investor put money in, only because I could not justify it.... BUT if you knew more... a lot more... had a Plan better than the blunt-stick the Noble Boys use....
You have a company that will never make a profit. Just eats capital. At some point you liquidate it and run.
At present the Fiji thing is at a stand-off. Happily for some I expect.
At least the big LGO debt cannot be called in now and upset the party, if it goes into administration ever.
So.. 1.2c could be Cheap buying if you somehow had access to knowing the NTAB.
Who knows. Things are seldom what they appear to be. :))
If LGO gets desperate and must sell the SXX shares for what it can get, who would buy the big parcel of SXX shares and at what price??
well well.... 0.3cps, 0.5cps?
That is where dilution hurts. If a sell-up is inevidable, then it is % of the company that counts.
SXX Price at posting:
1.0¢ Sentiment: Sell Disclosure: Not Held
