Today I have reduced my holding. Because I believe there is going to be another capital raising. I don't like it, and I still hold a large parcel. However, I think that is why the SP has remained under pressure the last few days. I also think it is why Simon Ashton is suddenly on the offensive with his commentary.
At the end of the last quarter the company had around $7.0m of cash and a quartely cash burn rate of $7m while this drilling is progressing. It has done them no good to have this well re-drilled and I believe they will have to raise more capital to maintain their participation or else dilute their interest. If I am right this is very poor capital management to allow themeselves to be placed in a position of going back to the market time and again. That is why they have little credibility and why the SP fails to take off when there is good news.
I just hope I am wrong.
regards
DF
somethings crook in tallarook
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Last
22.5¢ |
Change
0.010(4.65%) |
Mkt cap ! $644.7M | |||
| Open | High | Low | Value | Volume |
| 22.0¢ | 23.0¢ | 22.0¢ | $1.056M | 4.706M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 262128 | 22.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 23.0¢ | 3834531 | 37 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| STX (ASX) Chart |