With a C note over his 25 mill US he may or may not have had some claim on the company assets if it went belly up. By converting that loan to what in essence amounts to a placement he presumably cuts himself off from any security the C note may have offered him.
He certainly works in mysterious ways. Or perhaps its not so mysterious.
But it begs the question. If I had a spare $37 million (AU)- would I use it to buy 90million CMR shares at more than twice current market price? SImple answer is NO - I'd put it in the bank - take a room at the pub - and be set for life!
Nah reality is - if I was to take such a sizable position in the company I'd spend another 500k and and buy all sellers up to my 42cents
SO what's his angle. Are we missing something? BTW - that is a genuine question - Never thought I'd ask 2ic to comment but I am coz I can't see a negative in it......yeah yeah its dilution and it peeves me off big time too but its better than going belly up - that would would peeve me off more!
He took over as chairman in August 2005 - the sp was about a buck back then - he sold around 1.5 million shares over a week or so just over a year later in October 06 when she hit $5 - the announcement back then said he sold less than the number he bought in the preceeding 2 years.
He is now reloading at 42c - this time 90 million of them at more than twice the current share price
Oh it would be lovely to have had the plant completed on time and in budget and be raking in some divvies by now but that didnt happen .....so lets turn the page - stay cranky by all means - I bloody am so I dont blame anyone else if they want to stay angry
But lets look at that announcement concerning his sales in 2006. He sold less than the total number of shares he bought in the preceeding two years - I take that as saying he doesnt work on all that long a time frame.
So what's his angle now - he is reloading at 42c - is he just pizzing 37 million AUD down the loo - is he throwing 37 mill into a company about to go into recievership - I dont think so.
While I don't like him, I have to acknowledge he has worked CMR well for himself - didn't hang on waiting for divvies like I did lol - he made a motza - and has obviously done that at least a few times elsewhere - that's why he can cough up 25 mill US now - Obviously he buys low and unlike many of us SELLS HIGH lol
He is now reloading. Says a lot!
CMR Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
