my take on the very reduced action this Thursday is that the shock and awe response of those who witnessed the suspension , the losses, the question mark over going concern ..and most critically ..the resulting 50% share price collapse has been " oh I must get out too ". This would be the insto behaviour ..related also to its likely ejection from ASX 200/ASX 300 index..and it has taken a few long suffering mum and dad shareholders..a classic washout . But somebody is definitely accumulating ..evidenced by Friday's 23m shares traded at the close . Are they there for a quick turn ..is it a strategic corporate action unfolding ?. no substantial shareholder notice(s) lodged I note ?? Shorting the stock in this situation would be desperately dangerous I suggest ..and the accumulator(s) is awaiting the delivery of more shares at these 16.5 and 17 cent ((bargain basement)) prices. The MD should be desperately concerned . Given an NTA of 60 cents per share I suggest that Kagara immediately launch into a buy back with some of that $68m in proceeds from sale of lounge lizard . It might tempt the accumulator to take a quick profit ..and bring some fresh longer term support from a new band of punters .They may well need it . yes I own heaps and heaps of KZL.
KZL Price at posting:
16.0¢ Sentiment: ST Buy Disclosure: Held
