Low liquidity stock buddy. When your bum is getting reemed and you see some liquidity on the buy side of a stock you hold 30 odd million shares in and you need cash you sometimes have no choice but to bite the bullet.
Anyway, probably a great move on their part. Investors in coal explorers can put their shares away in the very bottom drawer for a very long time.
One positive I see from DADI increasing it's shareholding in MTE is that it chose to invest in MTE and not any other ASX explorer. Sure it has reduced it's average but not by much.
Their average buy in before the recent purchase was 70 cents per share. It has now gone to 62 cents. I also don't know of any other Asian shareholder of any coal explorers continually increasing their shareholdings.
By the way, that's it for a year (creeping provisions). They cannot increase their shareholding by more than 3% hence why they have gone from 19.6% to 22.6%.
The only way they can now further increase their shareholding within a year is by way of a rights issue.
At current share price levels that would help them reduce their average substantially.
MTE Price at posting:
8.3¢ Sentiment: None Disclosure: Not Held
