Running discussion on SP, page-5789

There are more than 1000 comments today. I’ll summarize some thoughts of others and some of mine –

1/ No one could have predicted that Chairman would sell off half his shares.

2/ Share price could possibly have gone between 14-16 in some time soon if not for recent news

3/ Newbies topping up indiscriminately IMO need to beware. Sometimes, if your holding gets too huge, topping up during a massive downtrend is the road to bankruptcy

4/ I think most shareholders are furious that free shares given to Chairman seem to be the current cause of destruction of shareholder wealth

5/ It seems a little illogical that these shares were not sold at high of around 38 but sold now

6/ Today’s announcement of change of director’s notice is apparently considered “NOT price sensitive” Can’t imagine how. Markets hate director selling

7/ Chairman selling has most likely crashed support levels. Around 33 million shares sold over last few days crashing through support levels

8/ If I was a long term investor, I’d wonder if attention would be paid by management to market dynamics of share price in future when recent sale has crashed support levels

9/ I understand that this is the second time, there has been a huge sale of shares this way. Last September being the first. Definitely damaging to long term sentiment.

10/ All might still be okay again, as share price recovered very strongly after last year’s sale as AVZ 3-4 bagged

11/ Today might be capitulation low if AVZ recovers and starts hanging on above 9.5 c but preferably above 10 c

12/ Probably best that management comes up with detailed updates explaining this

13/ Isn’t primary job of management to maximize wealth?

14/ Sale of around 33 million shares does obviously seem price sensitive. Not sure why no part of this was announced since Monday itself. Shareholders buying after that were buying with eyes closed

15/ Off market sale of 9.5 million shares @17c is most interesting, as it is above market price

16/ Curious if the offmarket buyer of 9.5 million shares @17c is furious now? Also curious if they were aware that there were other huge sales on same day at lower prices

17/ Would financiers/off takers/investors/potential JV partners be put off now

18/ IMO top 20 updates should be out to prevent further speculation of others selling

19/ Were there any further sales by Chairman today?

20/ Some concerns would remain in market of his remaining 30 million shares obviously

21/ This news is most likely the main cause of AVZ lagging other lithium shares recently, and probably influenced our downtrend since long.

22/ Good news from JORC etc and if lithium stocks resume uptrend then all might be forgotten. We can hope! It happened last September too

23/ Might take plenty of time to get back to highs, if at all

24/ Does Chairman believe in feasibility of project, that transport and other issues would be addressed? IF so, then company should probably update us expressly mentioning that

25/ Wouldn’t instos participating at higher capital raises be furious?

26/ Massive buys and sells today- plenty of absorption. Might be favourable

27/ Selling has happened at worst time due to tax loss season

28/ Broker data recently indicated insto selling. News generally leaks. This was the most likely reason for them selling and not feasibility of project

29/ Interesting that sale of shares started on Monday 4^th – same day as the other price sensitive announcement

30/ Some media reports with excerpts

Motley Fool
“According to the release, Mr Eckhof sold 32.5 million shares through off-market and on-market trades over the course of the last three days. No reason has been provided for the sale.

This is never a good look for a company, but even less so after questions about the viability of its operation have been raised.”
https://www.********.au/2018/06/07/...td-asxavz-share-price-has-been-smashed-today/

“AVZ Minerals chairman Klaus Eckhof offers explanation for stock selldown

When approached for comment by Small Caps, Mr Eckhof said he “had a small window” to sell stock because he had been unable to push it previously due to “various disclosure reasons”.

He added “everyone has personal financial needs” and noted that last year he sold at A$0.15 per share, before they slid to A$0.097 in September and rebounding to tip the mid-January peak of A$0.365.”
https://*********.com.au/avz-minerals-chairman-klaus-eckhof-explanation-stock-selldown/
“AFR

Well, isn't this curious. On June 4 to 6, AVZ Minerals' chairman and mining entrepreneur Klaus Eckhof sold 32.5 million shares, or more than half his stake, in a rapid series of mostly on-market transactions conducted at prices as wildly divergent as 17¢ to 12.2¢ a share.

Asked why he was selling, Eckhof just said there was a window where all news had been disclosed and he had personal financial needs: "Would have loved to sell some at 30¢ like all the other shareholders, but as a director there are not [many] windows available," he told us over email.”
https://www.copyright link/brand/re...klaus-eckhof-halves-his-stake-20180607-h112v1

31/ Final words

No part of above is intended to be defamatory. Just an upset shareholder like many others and trying to understand what is going on, and sharing some random thoughts, many of which others have expressed!

Media reports are unanimous that chairman selling has hit share price

IMO, management should come up with better explanatory updates to do some damage control ASAP!

Reasons for selling might be genuine that he wanted money and there seems nothing sinister. However, management IMO should expressly clarify that the sale of these shares has nothing to do with feasibility of project, if that is what they believe. All is not lost if management handles an explanatory update well.
Over to management and hoping they come up with something.