I'm no chartist, but there appears to be strong support at 23c.....going back to 2009 it bounced off 23c and we haven't seen that again until 30th July 2012 when it bounced again off 23c to 29c. Let's hope it holds.....its right there on the 52-week low (make that a 180 week low actually) right now. Re: equity/dept issues.....I would have thought its in nobody's interest to issue a gazillion shares at the current price. Everyone loses that way as the share price gets "bogged down" with the shear amount on issue.....long term holders lose dough, management lose creating value in their holdings, and even the rich equity buyers at that level miss out as the super-cheap shares they've just funded stagnate and never make them a decent profit.
Disclaimer: i don't really mind either way as i only bought in yesterday after selling everything in May and going to cash. Res was about 42c then from memory, but i only had a handful. I can afford to dump them for a small loss if this seller is persistent in taking it down further, but it did look good buying at 23.5c with the boxes that have been ticked lately.
PS I'm presuming a future profit margin of about $20= AUS a tonne....would that be about right?
RES Price at posting:
23.0¢ Sentiment: Hold Disclosure: Held
