It makes perfect sense. The specs need money to fund their exploration in case of miners or research in biotech etc. If investors become risk averse they will not participate in capital raisings or SPP etc. Money is the lifeblood of specs and without it they cannot function since they do not have positive cashflow. Therefore share price over time will go down if this issue persists. Ofcourse any specs with excellent prospects always will get funding and so yes, there are definitely bargains out there in the specs, but generally this sector will be crippled by the credit crisis or lack of confidence crisis, whichever way one see's it.
Add to My Watchlist
What is My Watchlist?