Congratulations to all those who have ridden the lamboo rocket over recent months.
However, I reckon that caution is needed over the next couple of months. 22.25 million shares are coming out of escrow in early June, and holders would be sitting on profits of around 8x.
The director resignation this week was from a bloke who holds around 7 million of those shares. Will he be sticking around for the long term?
And I note that Greg Baynton is also a director with escrowed shares.
I didn't follow it closely, but there were definitely some on Hot Copper who questioned his selldown of Tissue Therapy shares a year or three back.
This stock trades around 500,000 shares a day, which puts the escrow shares into perspective. What goes up can most certainly go down. . . . .if there's some fresh selling emerge. . . . even if you believe the fundamentals are there for the long term.
HXG Price at posting:
81.0¢ Sentiment: None Disclosure: Not Held
