which goldie to buy?, page-14

Very interested to see today's trade, AUD gold hardly down but I feel there may be another bargain buy to be had here like yesterday as the fearful gimme their stock :)

In answer to your questions my reasoning would be:

1. Why do retail shareholders subscribe to the placement at $0.85 when they can buy the shares on-market at prices as low as $0.635? Maybe somebody who subscribed to the placement can explain why they did.

I suspect those who did did so as soon as they got their letter when the SP was close to .85c, but the brokerage was free.

2. Why did the share price drop to $0.635 after the placement to "sophisticated" & institutional investors at $0.85 especially since the MD described the placement as "heavily over-subscribed?"

Because the SP follows the price of gold. I guess if you had a crystal ball you would "know" the SP would be in the 60s 2 weeks after the letters were sent out, but unfortunately I wasn't born into a gypsy family. Were you? LOL. A "sophisticated" trade of slr should understand the "Why", but not necessarily know the "When"...