The stock has gone from 10-12c at the start of 2017 to 40c today.
Who feels hard done by?
There are market risks and costs associated with SPP's and Rights Issues.
Timing and speed matter.
Placement is cheapest way to fill the coffers.
Us little shareholders miss out - but is that a big deal if you already have a good stake in the company?
If you got in at 15c (as I did) and some instos are willing to fund additional drilling at 38c, then I am stoked because they obviously feel that the stock is cheap at 38c and that they expect it to go up at a strong rate, subject to good drilling results.
In the grand scheme, an SPP is only really beneficial to holders with comparatively tiny holdings and disadvantages the larger holders.
A rights issue is also fine if you have deep pockets - but not everyone does.
There is no perfect startegy that works for everyone - so, its a compromise.
As much as I like the story, I do not have appetite to tip in more money as I (and others like me) need to manage risk.
Can't please all the people all the time.................
Bring on the drilling!
OKU Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
