"Lets just say then that "sophisticates" do alright most of the time compared to Jo blow shareholder!!!" this is not true.
Placements for small caps are often done at a discount to the current share price because the company is issuing paper money. Fundamentally nothing has changes except doubling the shares on issue and market cap. However when the shares do relist this so called premium often gone.
Sophisticated shareholders have to take the same risk as any "Jo Blow" shareholder. There are the sophisticated investors that are there primarily for a trade (myself being one) who will operate on a strict stop loss.
This placement is at 1.15cents ... so what happens if the shares re-open at 1c (I hope this does not occur). No such thing as doing better just because we are classified as sophisticated shareholders.
Just look at the recent placements for companies like AKK, PRA, POK, WHN, and even AWD just to name a few. At least 80-85% of the sophisticated that participated in the placements recently in last 12 months would be losing money today.
If you think sophisticated shareholders are so much better off then why don't you call your broker and specifically ask for deals. Set up a different account with each full service stockbroker so you can have access to multiple deals. If you think you are too small then form a trust syndicate with friends, family etc and pool funds and get access to the deals. No point complaining about it, come join the party if you think we always get some advantage. Have the experience yourself if its that easy making money as a sophisticated investor.
AWD Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
