Hi
@fourdollars - my reply not working either.
My reply is a bit all over the place because I'm not sure what you want me to comment on.
Firstly, I haven't said if this CR is positive nor have I said it was negative. All I want to do is wait and see how things turn out. Management have given me no reasons so far to doubt their decision making process. If we look at past controversial events, the forums explode with speculation and people getting upset, but in time has proven to be a master stoke by the board. Why would that suddenly be any different - so until proven otherwise I wait and expect this to work out likewise. If you are given 100 eggs and the first 50 are fresh, why would you suddenly expect the 51st one to be boiled?
As for retail participation, I accept your correction. In my mind I referring to the last CR that was entirely open to retail, iirc the CR back in the 3's (3.6c from memory?). That was a disgusting display of support for IMU by retail holders and the company paid for that for a significant amount of time as Bell Potter bled their underwritten shares onto the market for months and months. I'm not comparing the specific details of the CR then to the CR now, they are clearly very different. I'm looking purely at the retail response. It was retail who shafted the company at the time and there's no way I wouldn't give us a look in again. When compared to institutional placements so far, they have been 100% successful in adding value to the company. Pls don't point out we are now lower, because all that shows is Putin, covid and inflation have been 100% successful in devaluing the company.
As for the
theory of the previous cornerstone investors having sold out, that's been covered. It's not a theory I subscribe to due to my volume analysis at the time, but simply there is no proof of what happened either way. Assuming they had held on, which is my personal assumption, did they make a wise decision in hindsight? I believe yes, because hindsight is not here yet. I strongly believe that in due course their initial investment will be worth multiples of their patient capital through this downturn. If they sold out for the modest gains, they would find it very difficult to build such a large position again on market. Let's assume though that they sold out, as slick believes, to the index funds who entered positions when we hit the asx200. That's a non issue, because those shares still ended up in large long term funds. The point is, whether they were held or passed on, it wasn't to retail on the open market driving the price down for months and months. When opportunities come along that the big fish Big fish want, they buy as much as they can on the market and will take whatever they can any way they can, including manipulation, and keep it through all the ups and downs. They hold just like myself, Pilbara, Davy, micro, professor and everyone else I can't think of from the top of my head.
I can trade in and out successfully, but have never considered doing this for IMU because of the sheer potential ahead. I'll hold for the end game, which may be starting to line up. In hindsight, I'm sure everyone would have sold at 65, paid their tax and entered again for triple at 13. When you find someone who can see 6 months ahead what Putin will do and how covid will evolve, and the turn of inflation, then let me know. It's hard to suggest 'not selling at 65 was a bad decision' because of the major world events to come months down the road.
How about the decision the board hss made at this time? Again, until I have more information I cannot comment. One possible scenario in a myriad of scenarios is that the new investors are somehow related to an acquisition (incoming or outgoing) . Perhaps the current CR details have had a material impact on that upcoming acquisition to make it more beneficial/cheaper/easier/possible - who knows. I'm not speculating or suggesting, just showing that without any further details it is pointless in suggesting one way or another that the egg is fresh or boiled.
For now, I remain happy to hold and happy to see what happens. Even if this is all the info we get about this CR, I won't be selling out. I will sell on critical fundamental adjustments in the form of bad trial data, not because my company has secured a heap more cash in an unpopular way.
(20min delay)
