Typically very cleaver capital raisings push the share price high so that you pay move per share, this works very well with entitlements issues for small caps.
The market wants entitlements so they push up the share price to artifical levels by buying more shares,then bail out when they are over because they had no intention of keeping the same market position after the issue.
This leaves one of two conclusions either over valued at the time of the entitlement or over sold after, with small caps it's normally one or the other.
There are several reasons why I wouldnt hold this company 1 The copper is way too deep
2 They love to show pretty pictures to excite the market
3 They measured the grade of copper with a hand held device before the last share price run and didnt notify the market. Therefore they had a fair idea what the copper grade would be and could have controlled the share price run. Its called ETHICS.
4 Some of the board have been on seveal companies that show large swings in the share price. This tends to indicate the board exaggerate and fire up the market. They tend to have an addiction to floating companies on the asx, manny of which would fail with modest commodity prices.
MOX Price at posting:
7.7¢ Sentiment: Sell Disclosure: Held
