While I am a bull on HDR's long term prospects, IMO the run to recent high levels was way, way overdone and now we are seeing a more realistic share price.
Maybe a classic pump and dump???
I don't like private placements regardless of the outcome. Period. It isn't fair to existing shareholders and is a free ride to BOD's good buddies and favourite friends.
(Had I been able to get a couple of hundred thousand shares at $1.10 and flip them at $1.70 or more maybe I would be singing a different story!!)
IMO the future share price goals need to adjusted to reflect the dilution caused by the entitlement and placement.
Fact of the matter is that after these two events, your previous holdings have been diluted from 1/450 million +/- something to 1/630 million +/- something.
If you were looking at $4.00 per share pre-placement and entitlement, then $3.00 per share would be the equivalent after.
Lastly, I really doubt that all those 150 million plus shares from the placement and entitlement issues will be held (WPL's won't be sold for sure!!) forever.
Look for a surge in volume and drop in price once some of them come on the market after they are issued.
Long term bull, short term pessimist!!!
HDR
hardman resources limited
