Ann: Completion of Upsized Underwritten $100m Placement, page-35

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bigcrazau

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22/04/24

11:16

Post #: 73453744
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Originally posted by naomhan: ↑

Dont get emotional about your investments. If you want a cause to be passionate about, there are plenty around, but the share market ain't one of them.

You think i wont be able to get back in at 80c? The company just announced that I have the ability to buy $30k at 80c, when I normally hold $10k at a time. There was a risk of scaling back, except they also just announced that with the $5m SPP, theyll accept triple that if they can. So yeah, I can buy at 80c.

And this isn't a new phenomena. There is nothing new under the sun. Look up every other SPP on the ASX and you can see exactly how this will play out. It will not go to $2 in a month because we now have an SPP hanging over our head for a month. Here is how it will go.

Everyone can buy $30k of shares at 80c. Which means that in the next few weeks, loads of holders will happily sell at 85 and buy back at 80 in the SPP. Unless there's a tax reason, you'd be silly not to. So that's downward pressure until 10 May. Price will generally actually go to the SPP level.

And then we have the new shares being quoted on 16 May. Now, if it doesnt go to the SPP level, watch for this date. Because $30,000 is actually a lot. More than most holders trade in. But if you have the cash and it's trading at 85... why wouldn't you? So come May 16, loads of people will receive their new shares and immediately sell a chunk. If I buy $30k at 80c and sell $20k at 81c, I make a profit and continue to hold the $10k of shares i just sold at 89. So 16 May you will see a chunk of new shares being sold on market - more downward pressure. Meanwhile, many unemotional buyers will simply wait, knowing that there will be a dump. And buy then.

This is how you make money. You see it happen 20 times, and the 21st time you know exactly what is going to happen.

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This assumes that the maximum placement of 6,250,000 shares has not been oversubscribed. My reading is that we aren't guaranteed the full $30,000 if this is the case? Happy to be educated here.

DRO Price at posting: 93.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 81.0¢		Change 0.010(1.25%)		Mkt cap ! $706.4M

Open	High	Low	Value	Volume
79.0¢	82.5¢	78.0¢	$7.281M	9.055M

Buyers (Bids)

No.	Vol.	Price($)
3	27773	81.0¢

Sellers (Offers)

Price($)	Vol.	No.
81.5¢	4500	2

View Market Depth

No.	Vol.	Price($)
3	27773	0.810
5	35264	0.805
14	427142	0.800
8	55710	0.795
14	93884	0.790

Price($)	Vol.	No.
0.815	3500	1
0.820	128709	10
0.825	109175	9
0.830	207650	10
0.840	95970	7

Last trade - 16.10pm 13/11/2024 (20 minute delay)

DRO (ASX) Chart

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