all of a sudden, page-32

jacksun

You're best off looking at who managed the rights issue and then working back from there.

It shouldn't take you long to uncover a trail of retail wealth destruction.

The creation of a "false market" is grossly unethical and that's exactly what has happened here.

This is not a black and white situation - these scenarios are not unique but many factors need to fall into place to create an environment where "sophisticated investors" are able to be guaranteed returns on investments within short periods of time. Before anyone comes on says "yes, but broker ABC has only traded this much stock since the rights issue", they need to think outside the square a little - rights issue stock can, and is, transferred into other brokerage accounts almost immediately.

I was thankfully able to execute an exit strategy before the bloodbath kicked in from the mid teens. I generally run pretty tight stops but there was a certain stink surrounding the trading patterns. For a stock with only 84m shares on issue, the constant orders of 250k-500k on both the buy and sell sides made me uneasy. From my experience it tells me the stock is being managed - the normal relationship between short, medium and long term traders/investors is distorted and organic price development no longer occurs.

Regarding where the company is right now - one needs to ask if they are still where they were prior to the rights issue. The answer to that question is obviously no but investor confidence has taken such a big hit that any sign of selling perpetuates further selling despite the developing story.

The recent announcement was by no means a bad one - they have to start somewhere. The problem is that every greedy punter out there wants an Olympic Dam every time the drill bit goes in to the ground. For those of you damning the prospect after just 2 holes when these is so much more to come, you probably need to educate yourselves a little better.

It's a shame to see such despair on these threads - it's more of a shame to see vultures jumping all over other posters who have clearly taken a hit.

Marchello