re: mcneil nominees / shaw stockbroking I suspect further positive news from the company might be timed with the end of the substantial shareholders selling...
We may see an update here and there, but I suspect anything really juicy would be kept in reserve for when the selling is over.
Clearly, this selling is placing downwards pressure on the share price...amazing therefore the rises we have seen lately and it's resilience at key levels. Clearly, the seller is mindfull of selling only as much as the market can handle, without pushing the stock over the edge.
These are not the actions of someone executing a total exit strategy...as such, it appears obvious they will be retaining a decent level of exposure long term, which would seem appropriate given their history of support for the company.
But how much do they intend to keep and how many more to sell?
I suspect FDL might know...lol...do people actually believe the company would not be aware of this cornerstone investor's intentions...how many they intend to offload and why?
As has been suggested, these guys picked up some 70m shares at 1.5c in the recent placement to add to their existing holdings, at a time when few were interested or prepared to support the company...a pretty good vote of confidence in FDL's management don't you think?
Anyway...now that the price has doubled, it would only seem sensible to reduce ones exposure and lock in a few profits...but there could be much more to it than that in my opinion.
In effect, I suspect we are seeing a redistribution of shares and subsequent loading up of the register to a retail sector now interested in following the story...which at this stage in their life cycle, is a desirable profile for the register.
In short, the increased liquidity from this end of the market should help facilitate ongoing market interest for exposure due to the increased liquidity at hand...not so long ago, the daily volumes were next to nothing and even those keen on the story would have avoided it like the plague for fear of getting stuck high and dry...I was one of those avoiding it for this very reason!
Sometimes, reductions by larger holders can actually be a good thing...but only if managed well and done so for the right reasons .
Judging by the continued interest and rising price, it would appear that on this ocassion, it is in fact being done for the right reasons.
lol...imagine what will happen to this stock when it becomes clear this seller has finished and the tap has been turned off.
This will be important for two reasons...firstly the obvious positive impact the removal of the selling overhead will have on the stock, but perhaps not so obvious will be the signal to the market that the seller feels the register is just about right to support the next phase.
This will be a good day!
Cheers!
FDL
flinders diamonds limited
