I can't disagree with what people have said regarding how Patersons handle these placements, but it is a quick way for companies to raise needed funds and Pattersons are the most successful at orchestrating the outcome the companies want. There are some investors that benefit from this but for the rest of us it means we have a company that is funded to drill and deliver news that could potential put the company on the map and with a more appropriate market cap to boot.
We all knew RMX needed to raise funds soon and that they have historically done business with Patersons....so not really a major surprise when it happened. Came a little early in my mind but none the less was going to happen.
If you wanted to (given, as some have said, it was guaranteed for the price to fall back because Patersons was involved) you could have still gotten out as high as 2.5c post the placement announcement. But most of us haven't as we are expecting news flow any minute that could continue the up trent in this stock.
As we know the price does tend to settle back or below the issue price post a placement but all depends on the news flow.
Given the news we are expecting shortly (hopefully something this week) on metallurgy, trenching, scoping, then drilling, i think this will be a bump on the way up. If we get news this week, the low may actually be 1.8c...if not, we may get to 1.7c...but it won't last long.
Im guessing news on Friday or Monday!! IMO
GLTA
RMX Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
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