growler update, page-5

Wasa,

just buy them off the market at 3c

I am new to ITC, and just did at 3.1

The way these things work, it that the SP is always trashed down to the cap rising price, but not much further.

Why how? What is the rational for a sell down?

The only thing i can think of, is there is the herd mentality, based on a notion of selling old script you might have paid less for and take profits, or a tax loss if you paid more for, but bet surely, that the crowd will, same, and sell it to the price that it is raised at.

It usually puts a floor in the SP, and is a confidence move for new longs to enter, as i did.

I notice they can occasionally drift lower than the raising price, and not sure why, could be if an underwritter actually wants more old holds, not to take up their rights, and take a larger position.

In any event, a quality stock, that was going north before the offer, will return to do so, when its all over with.

The point is, BUY at or close to the rights price, and it'll be close to the short term low.

If the underwritter sells it down further, its a very good sign of faith in the company.

Too many retailers play right into their hands, and need a little thinking as to what is going on behind the curtains.

This is IMO a gem of a little company, that will have the cash flow from 40% of 1500 bopd in the not to distant future.

600 bopd, with $50 AU profit margin, is like 11mpa to revenues.

I have an opening position, and if it is pushed down by the underwriter any further, if that is the game, i'll play and get some more.

But, can just be the retail sheep also who have sold out.

It may simply come down to the faith in the market doing what it mostly does, sell it for 3.5c, cause you can buy it for 3c tomorrow. But not for long.

cheers