wcl - now big time - hang onto your hat !, page-34

WCL has traditionally traded on very thin volumes. So up to now it hasn't taken much to move the share price (especially downward) One of the issues that it has is that a significant proportion of shares on offer are held by only a few long term shareholders. The top 5 shareholders presently hold 84% or 93m of the share on issue

So it is very logical that the price has gone up substantially since the announcement

If you bought at 50c or sub 50c, why not sell 50% at 72c plus and then buy back your 50% + 10,000 more shares at 45c and averge down - you end up with an average price of say 35c and be better off than before the announcement (tax considerations excluded).

Price might get to $1 - but still do you want to get caught paying $1 (or average price of 72.5c) when another 100 million plus shares are issued at 45c. Surely there will be a few who will be chasing a quick buck after the new shares start trading. There will be more buying opportunities.

Post issue, WCL may still be plagued with issues of trading volumes. The 2 or 3 majors who will underwrite this share issue are going to take outright at least half of the shares from this capital raising, so at best we're only going to be looking at 60-80m shares available to be exchanged between us mug punters. so probably 75% of all shares will be held by 7-8 major sharehlders.

I like WCL. They have some good staff. Small acreages, but these appear to be well located. Dawson project is a good move as is cap raising from parties outside core csg industry.