res share price , page-53

the management last raised money at 18c - (equiv $1.80 post consolidation) - seriously, given the turmoil of the last 20 months what did you expect them to do ? There were 2 choices, raise at a price that they knew they had a chance of getting some serious money in, or do nothing and pray that the market would improve before their existing funds ran out and then raise. Anyone here ever tried going to the market and negotiating a decent price when everyone knows you've run out of cash? Thank goodness they raised when they did, otherwise we would now be in liquidation mode.

Given how hard other companies are finding it to raise money at the moment, a 25-30% discount to market isn't that unreasonable. One example, Scott Douglas's other company, Balkans Gold (IRH) raised a paltry 45 grand from their rights issue. It basically cost them more than that to do the issue.

As for claims of manipulation of the share price - yes, there has been some pretty heavy selling over the past 3 or 4 months. I believe much of this is from the vendors of the Uranex asset. The escrow period has long since expired, and they have sold them. Now, they probably could have sold them with a lighter hand than what they have done but I have not seen anything that looks remotely manipulative. Unfortunately, a consequence of selling a large line of stock on market, particularly in the current climate, is that the price will go down.

It all comes down to this - do we believe that RES have the quality of management and resource to ride out the current financial storm, develop the company in to early stage production by 2010, and add shareholder value over the longer term. If all you are interested in is short term returns in this market, you may as well start playing the pokies. I've had a gut full of people bellyaching - if you don't like the story, if you don't think the management is capable of delivering, there are thousands of other companies out there (for the time being anyway) that would love to have your hard earned, pumped in to them. Personally, I doubt that many have the same amount of upside that I believe RES represents over a 3 to 4 year outlook.