'So in a sense we have an artificial market for now as the only ones who can trade are those that are already under water and hence reluctant to sell down. That is why the price is holding up so well. I suspect is goes under 20c when we get closer to deal approval'.
....well said lord i'm of the the same thinking as you.
When you think about it,if you're an existing shareholder with an entitlement to purchase 20k shres at 15c each which might be subject to some scaling back depending upon demand,i can understand peoples strategy to keep the price up as high as possible above the 15c issue.
So cum the day when all the new 15c shares are listed on the market there will probably be a rush for the exit doors as there will be many wanting to try and cash in which will put some downward pressure on the SP.
Also,with b's new highly discounted shares on issue,a greater focus on rural services and one divisonal sector,no divi's,a cloud over the future of the entity and sale of other noncore businesses yet to be finalized to reduce the debt even further,some further downward pressure on the SP to 15c is possible.
ELD Price at posting:
$2.50 Sentiment: None Disclosure: Not Held
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