Just on 3 weeks ago SSN was riding the crest of a wave on the back of some positive announcements regarding a proposed land sale, a possible jv with some Chinese interests, and some promising drilling results at NS. The sp was sitting at around 4.6 cents.
Then we hear that the land sale was in jeopardy, the cement truck broke down at Billabong causing untold damage, the company announced that it was carving off half of its undeveloped NS acreage for around $5.5 million in cash (subject to Billabong's problems being fixed), and the company was going to raise some more cash by offering the left over RI shares to cashed up instos at the initial offer price of 2.5 cents. Next the land sale back is back on track, we look like getting $5.5 million from the RI, $13.5 million from the land sale, and $5.5 from NS (total $24 million give or take). End result - the sp dives 45% down to 2.5 cents.
I'm sorry, but I just can't follow the market's reactions to this stock.
SSN Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
