you cant blame 55c on 85c. That is a minority of weak hands, in the ebb of the tide. (softening lithium price and sector wide sheep trade)
But you make a point, that at 1.40, etc, should have been more closely timed with CR at 1.20 say.
While they can not pick and choose the availability of CFTF, (transient) which in effect still raised at 1.00 (block trade parcel at 85c), they at least were conjuring the renard deal for some time one would think, that might have been better in hindsight if they had been able to prepare for the CR before the announcement run, but not lock in the detail until the price was aloft. Perhaps there were no CFTF available at that moment or weeks that followed, when they announced it?. Even without CFTF, a retail rights issue may have been supported at 1.20 say. But think what transpired, in the following weeks. The sector rout, would the price have held up while the rights issue was under way ?
The benefit of a CFTF is the higher net price, and a block trade that rips the band aid off. Whether it is in a prevailing up draft or down draft, it is done. And not subject to the ebs or rising tide.
Nevertheless, at 1.00 is not a bad out come, but precipitated the block trade flips to 85c. And the softening sector with lithium price fed the sheep trade has done the rest. Yet, only a small amount of the registry has changed hands. Says that the many, see the merit that i have repeated ad nauseum.
That minority who have sold, who have influenced the floating sp, are those whose emotions get the better of their long term bets, the traders who gamble on that sheep trade, and the fundie who doest care but reduces the sector spread. Meanwhile the longs accumulate the opposite side of those trades.
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