Spot on butcherboy. If the SP started rising sharply on unusual...

First 58 Last

Share
Profile

Follow
Endyne

680 Posts.

12/05/16

16:43

Post #: 17750559
Share

Originally posted by butcherboy ↑

OK, fair comments TDJMH, but if there were a problem, why announce that everything is fine, the transfer is occurring once the banking paperwork is completed and give the name of the investment fund owner, then immediately go into a trading halt?

Here's another theory for the TH... There are other recipients of these funds, as the announcement states, and we don't know who they are, RD probably doesn't even know who they all are. Someone may have an involvement in another company, or be loosely connected, and decide to buy some shares in EVM once they hear the money has definitely been transferred. This would be a case of insider trading and RD is simply trying to minimise this possibility. RD perhaps feels he has no real control over who may or may not have insider info until he can release the final announcement to the ASX. I think that scenario is a pretty good explanation and reason for a TH. If that is the case, I applaud the strategy.

Expand

Spot on butcherboy. If the SP started rising sharply on unusual volume before any announcement of the money being in the bank it would certainly look like a leak - very probably beyond RD's control. This happens all too often all over the ASX. Recent FMG deal with Vale anyone?

I think the company may even be required under listing rules to request a halt in this situation.

As I mentioned previously, a totally prudent move. I see no reason not to be optimistic.

EVM Price at posting: 10.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply