Phone call from PIO today, page-42

"For those who ask "Why would anyone buy at the offer when they could buy cheaper on market?"
Well some of us buy to support the company because we believe it what they are doing and realize that without the money they can prove up nothing. For those who do not contribute, then don't worry as we will carry you so that you can make good money later without any risk or effort."

Lockitt - Respectfully, that is quite an astonishing paragrpah in my view. And it is the type of thing that I think ought to be avoided by all investors.

I am the one that asked the question that you refer to so I feel like I should respond.

Why anyone would buy shares on the principle of "supporting the company" escapes me entirely. In my view, PIO is not a footy team or club - it should not ask for nor expect your 'support'. It is a commercial entity that is selling shares. It is set up to provide financial rewards for the shareholders. It should not even contemplate asking the shareholders for their 'support'! It should make its shares financially attractive. At this point in time it is trying to sell shares more expensivley than they can be purchased elsewhere (e.g. ASX). That is not financially attractive.

Would you walk into Coles and say, "... I am happy to pay more for groceries because I support WES?" Do you walk into your bank and say, "... can you please give me a higher interest rate on my mortgage than the bank next door because ... I like you guys?"

Your particular view flies in the face of the 'efficient allocation of capital'. The whole idea behind the efficient allocation of capital is something akin to Darwinism for companies. The efficient companies get the cash and grow - the inefficient companies don't and they wither and die - as they should. That's the way of things.

So what your actually saying is that you have purchased shares that are valued by the market at less than what you paid - yes?

If there were two PIO markets running right now and one market offered shares at 3.6c and the other market at 3.4c which one would you buy from? For the life of me I can not figure out why any investor would pay more than you need to - sorry but that makes no absolutely no sense at all.

Individuals can operate, in many ways, similar to business. If the individual does not allocate capital efficiently they might well suffer the same consequences that face businesses who waste their capital.

Good luck to you and keep a watch over your emotional investment.