oxi mafia, page-3

123enen...

The critical short-term issue for CVI, to enhance future upside potential, is to fix the register...

PERIOD!

Placements are not the doing this...however they are not helping with the wider solution.

By the way, those taking the placements will be holding onto them according to Smyth...fine...but did they sell any prior in order to buy these ones?

The trading patterns either side of placements screams that this is the case.

Some time back I suggested to Smyth in an email it might be a good idea to adopt a more stringent vetting system in relation placements, based entirely on the trading patterns and subsequent trading activity each placement seems to generate...mostly prior by the way. This was months ago...and I have watched on as the same basic patterns have continued...placement after placement.

I count 5 separate ocassions of late where the stock was on the verge of finally breaking out...and on every single ocassion, the company has either issued an appendix 3b, or indeed a directors sale right at the point of highest sentiment swing.

Coincidence?

Mind you, I am fine with this sort of "management" of the market sentiment as part of the bigger picture...it happens all the time...but to argue "I hate making placements" while rushing as many through as possible whilst the stock is at its bottom is something of a contradiction in my view.

For christ's sake, just tell us they are for our Angolan partners if that is what they are for...or to parties associated with the Kwanza applictions...whatever...but this business of needing "working capital" raised at the lowest price in months...WHICH WE ALL KNOW IS THE VERY REASON "PEOPLE" HAVE THE INCENTIVE TO HOLD THE PRICE DOWN IN THE FIRST PLACE"

Get some assets and we gladly dilute...but with nothing in the asset bank...what fall back value that may exist will be diluted beyond recognisable value?

I do not want to see CVI become a billion dollar company, only to see 2b shares on issue...perhaps in this regard we need some decent direction as to his long term intentions?

I know I can ring and discuss this...but why can't such information be tabled for the market via official channels? Surely all shareholders have an equal right to know the CEO's forward plans...where they do not compromise the corporate side of things of course.

The reall issue for me is one of sentimnet management...which I have discussed so many times before...and it is the sort of driver than can see a stock killed off dead in market terms for years to come.

We have so far this year seen just under 90m shares issued for an average of about 19.5c...at 40c it would only need to be half this amount, or alternativewly, we would have raise the equivalent of $35m rather than $17.5m via the same level of dilution.

In this regard, such things can have a critical long term impact on the stock's future price ranges.

At present, we have so many holders either under water, or simply watching previous profits vanish...this is now a very nervous group, highly likely to jump at virtually every shadow that falls before them. On the back of this, "players" manipulated the stock to buggery...and no doubt those taking the placements have had hand in it.

Get the price up...STOP KNOCKING IT ON THE HEAD EVERY TIME IT RUNS...and suddenly the nervous group shift their persona to a more sanguine group, far more comfortable to absorb 5 even 10 point swings without major reaction.

In effect, they become somewhat insulated from the manipulative practices that we see from time to time...this in turn will create a more stable environment for holders, which discourages volatilty...which in turn encourages more investor types.

It might seem like a good idea to issue 5m shares 15 17c...but it is a much better idea to issue the same number of stock at 35c...for all concerned mind you, for the simple fact upside will be significant greater with fewer shares on issue and a much calmer sentiment bank!

On the issue of share price...clearly a good part of this is directly related to the recent market carnage, new credit "environs", etc...but when you do a cross-market comparison, CVI has actually performed worse than many others in this period.

This is directly related to the register profile...which is directly related to managements activities, both in terms of making promises to the market, non-communication of missed deadlines or changes in circumstance...and indeed with reference to putting such claims UP IN LIGHTS via the adoption a high-profile communication route.

From 6.5c this was the right approach...still is in fact...but with it you need to appreciate the nature of the moths such lights attract and in the process, work them accordingly.

Give them a buffer of profit safety...and suddenly the fragile nature of things diminishes...sentiment will do a complete about face, traders will become holders, volumes will drop off...and the manipulators will move on to greener pastures.

It can be done.

Issuing a placement notice for 5m shares at 17.5c on the night that the stock was poised to finally break free of the current debilitating trading range...in my view...was not indicative of a company wanting to see their share price higher.

I bought just over 400k CVI shares today...all at 19c...even though I fully expect I could have bought them cheaper. I did this to support the stock and help prevent the "players" from pushing it lower.

Will probably see a placement or directors sale notice tonight...lol

Actually, I would buy more options...but would probably just end up buying more of Peter Smith's options again, as I did last week...only to have the pleasure to watch them fall after they announce the sale notice?

I am buying however...not selling...so am I mad?

Cheers!