watso still here. gda still a dog, page-3

good thinking upatree. watso noticed your comment about watching gda, when it got under 2c - well, a lot of punters like these cheapies, and that is where a lot of buying support would have come from - but now that the price is closer to 20c, then this stock is of the radar screens for many punters

watso just looked at the details regarding shareholder approval for a placement. shareholders approved that the company can issue 20m shares at (up to) a 80% discount to market. not only that, but for every 2 shares, one option will be issued.

now put yourself in the shoes of a punter, who might like to participate in the issue - and it seems that the directors are willing to take up some of the shares. to make money, the idea is to buy low, and sell high . watso would guess, that people who are thinking about taking part in a placement, would also want to get in as low as possible. watso might be a bit cynical, but seems to think that it might benefit some people for the shares to be as low as possible, at the time of the placement - as that lessens the chances of loosing too much, and maximizes the profit potential. a placement simply has to be on the cards, as the company is underfunded

as mentioned, the company has shareholder approval to issue 20m shares. watso has no idea if the company has made any comment on the matter, but are they going to issue the shares prior to the freebie issue, or after the freebie issue. this is an important question, because 20m shares (and thus 10m options) issued prior to the freebie issue, will raise a lot more funds, that if issued after the freebie issue. mmmm - watso just reflected upon this, and wonders if this is why the company has not annoucned the date of the freebie issue - after all, this has been in the wind for so long now ( about 6 months). just speculating, but it could well be that the company is trying to do a placement, at this point in time, to maximize the amount of funds raised. one can be very cynical about all of this, but what better way to get a cheaper placement, than perhaps to push down the share price a bit - just a fleeting thought, nothing more

as watso mentioned in his earlier post, but if the company is going to do a 5000 meter drilling program at parker range, then they are looking at $1m quarter - but what if they plan to do a bit of drilling in the pilbara somewhere - even a few holes,here and there, on a few prospects, would cost about $200,000 - plus associated costs - and then the company is looking for a project in china, or somwhere else - well sadly, that also needs funding.


one small trade of 10,000 shares in the closing auction, made the fall a bit respectable for the day. with a lot of trades going through at 17.5 and 18, then that will probably set the benchmark price in the coming days. who knows, maybe this will set the benchmark for a placement at about 14c. a placement at these levels, will see the company funded till about march of next year

anyway - watso just thinking out aloud