copydog,midlifecrisis,a very good account of a rights issue and...

copydog,midlifecrisis,

a very good account of a rights issue and definitely how it should work in theory, especially if everyone held tight and then took up their rights. But like most dislocating events, this RI is an opportunity or mechanism for profit taking and I agree with pesa that it will be driven down in the short term by opportunists. So a lot of volatility on the cards until the consolidation occurs.

Seems like this RI may have been timed to coincide with the issue of drilling announcements during or shortly after the RI concludes. Regardless of the content of any announcement, there will be many with the short term aim of just crystalising a profit and that means a fair bit of selling once the new shares issue. Most of the big buyers will know this and may wait until it bottoms before buying back in.

Pre consolidation anything between .013 and .02 may be the trading range.(= .39 - .60 post consolidation)

A good indicator of the quality of the stock will be to see when the buyers return. Graeme Sloan has very ambitious aims for TAM and unfortunately this RI is a necessary evil if they are to achieve a mid tier status producer. Definitely a long term stock. As pesa states, some tree shaking may occur but I'll be seeing it as an opportunity to buy should that occur.

Good luck all, interesting days ahead.