I understand you are taking a conservative view in regards to WTN...but you might want to make sure these views are baed on sound reasoning.
You have been saying you want to wait till after the placement stock is released and the price falls, yet in this time the stock has risen significantly..and is still rising...and still you are waiting.
You may be right and the stock falls after the placement stock is relased to the market...in a month or more...but from what price...50c...60c...80c...$1...more???
At which point to we re-asses our views?
Not all dilution is bad...even when discounted to market...it all depends on who is getting it, why, what they do with it and what it means in the bigger picture?
Most stocks need a minimum free float to attract decent market attention and with just 15m shares available to be traded and possibly as little as only 1-2m in the current free float, many larger players will avoid WTN regardless how attractive it might be.
Adding 25m shares for a grand total of just 40m available to be traded...total...is getting closer to critical mass in listing terms, yet even here were are looking at a likely free float of just 10m or so shares at the peak, which will drop off as investors take positions, further locking off the volumes in the free float.
I see the placement as a good thing...and with Azure behind it, you can look forward to high volumes and typically higher prices if and when they decide to net exit, either partially or fully.
Meanwhile, THEY have a month or two to groom the stock in preparation, which means cornering the market, creating a trading environment and generally preparing the ground-work for the eventual high intensity trading period.
This is likely to be many weeks away...so given the current float, how high do you think this thing can go? What about when the Company has reason to communicate to the market...lets not forget, recent moves are on the back of virtually no news.
The question in my mind here is how high...and what news/activity will transpire in the interim to help the process along.
In the trading view of all this however, lets not forget WTN now have a significant asset here, that will add real value to the company.
At a corporate level, I compare the current phase of WTN's life to that of GNM at 40c prior to their run to $1.80+
No brainer in my mind at current prices, regardless of when you get in.
Cheers!
WTN Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
