frogscent....agree with a lot of the sentiment behind yr post. i.e: in the long term it doesnt really matter if the company is heading in the right direction.
I believe there WILL be a placement, hence the reason why I was the FIRST person to post such an opinion on HC last week.
I believe the placement is a POSITIVE for the company because it will be accompanied by upbeat news that may - or may not - reflect scenarios such as thopse propsed by omarz above.
The fact is, the only people who would be WORRIED by a placement are day traders who probably flip WMT like a McDonalds burger...and who really cares about them anyway 'cos they are playing a different game than the WMT investors anyway.
Frankly, I don't give a rats about the Traders (no offense intended) because they fundamentally play a different game. IF WMT management are fair dinkum (and I believe they are) then they obviously want to grow this company and every investor would already know that to grow a company from scratch you have to do placements along the way to fund expansion.
And that - I believe - is what WMT are doing.
And even when WMT do announce this placement and come out of trading halt, hey - who is to say the accompanying news won't be so overwhelmingly positive that the stock rises anyway (and keeps the DTers happy as well). Anyway, I'm not going to speculate on any of that...all I know is that there is going to be a placement and I could tell that by the manipulative trading that was occurring last week.
Bottom line is - I reckon WMT are trying to build a real business here and because they are smart operators they, and their Broker, are taking advantage of favourable & buoyant markets to raise working capital.
That is what all companies do. It's just that the charlatans out there (eg: stocks like TAS) cannot easily be distinguished from the (say) OXRs' of this world in the early stages of building a company. Hence a lot of people are (rightfully) sceptical when they see these "penny dreadfuls" do a number of placements. Only in the fullness of time will we know what WMT becomes and it is the "pioneer" investors/speculators who back management that can potentially reap the BIG rewards...
....or, invariably, lose their money on another "next big thing" that never makes it.
I happen to think - personally - that WMT might actually go places, and the "early birds" who buy and hold will continue to do very well...
...irrespetcive of some placement or not.
Coop
WMT
western metals limited
