dont think you are wrong at all. i think this company has prospective ground, and now a much stronger management team.
it simply appears that juniors need a combination of decent ground and marketable/ respected management team in order to get taken seriously.
there are heaps of companies that have reasonable ground but floundering SPs that dont seem to reflect the value of their assets, some even trade at less than cash backing!
presumably this occurs because people see better value/ less risk in other companies. i personally distinguish based on relative strength of management teams. SMD has changed their management team with well known active directors so i think the market demand for shares will increase (and with it share price).
that all said, people are not necessarily going to rush straight in. some will wait to see if they can pick shares up close to the rights issue price (unlikely here IMHO because of how tight the register is) or derisk their entry by waiting until the new directors get set (and therefore motivated to raise value) or to even wait until the new management team's direction is known (ie new ground or new development/ exploration plan for existing). Each investor has a different strategy and experience and presumably will chose to pony up for SMD shares if when they see value, and at a time that they are comfortable with.
as for me, i am fortunate enough to be able to enter and wait. simply a fluke of timing that i got my fill (at a price i saw value at) prior to the change in the management team. This is a speculative play, and at the current prices i believe that the potential reward is well worth the risk. particularly since i now see the management change as reducing the risk
glta
SMD Price at posting:
8.7¢ Sentiment: Buy Disclosure: Held
