Guys, I have a theory as to why management is happy to let the SP drift. Kick it around and tell me your feedback.
I think it was either Brenden or 5hareholder that posted that brilliant post a while back regarding the difference b/wn the business and the SP. The inference that the business model is sound but the market controls the SP.
Now management could have come out and rectified the admitted mistakes in the half yearly but chose not to (don't tell me everyone is too busy), likewise they could have easily debunked the latest stories in the print media about Zimbabwe but chose not to.
You see to an extent management DO control the SP and seem happy to let it drift. Why is this so?
1. If they are aware of any new broker reports that have not increased SP valuation, they may be happy to let it drift so that when they do release the report/s and the valuation is say 10 - 12c we will all feel better and the sentiment will be positive and may get our bounce.
2. Let it drift so as to attract a corner stone investor (over 5% ) who will see immediate SP bounce when announced to the market.
3. Letting it drift lower with no announcements will tighten the registry as frustrated mum & dad type investors sell and seek investment elsewhere, allowing stronger investors to clean up.
4. Management have stated that they are against consolidation of the registry until (with a 5 for 1 or whatever ratio) a SP of 50c is achieved then they may look at it. Now this is never going to happen until the insto's load up so they can sell to their clients and in doing so raise the SP towards that target. Insto's will want to buy as low as possible to achieve this, maybe around the 6 - 6.2c mark.
Don't get me wrong, I strongly believe the fundamentals of this coy moving forward are outstanding, I just think that management would be more proactive with setting the market straight concerning resent posters concerns than let speculation and fear spook the SP.
My thoughts only I may be way off here but just another ingredient for the pot.
cheers, Bob.
CCC Price at posting:
65.0¢ Sentiment: LT Buy Disclosure: Held