Ann: Quarterly Activities and Cashflow Report, page-42

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oldgold64

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08/05/20

19:29

Post #: 44520267
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Originally posted by Colonel B Ron: ↑

Whats done is done, but Zoltar, you need to understand that at the root of your problem is role the brokers play in these situations.
They see a company in its predicament and begin to salivate as they are in a position to rape and pillage like no one else. Firstly, they get an underwriting fee of around 6% of funds raised so they are strongly motivated to take zero risk for this fee. They usually have the punters lined up before they agree to the underwriting so its an arbitrage fee. The lower the price and the better value it represents the lower their risk to them and to their punters. It matters not to them how many shares are needed to be issued to raise $xmillion as their fee is based on the amount raised. They have a following of compliant clients who can be mustered to take up shares at the bargain price. Their clients get the shares at 30cents and are happy to make a 33% overnight profit and the broker looks like a genius whilst the likes of you and me get it right up the a#@e. The surviving directors and new CEO get as many shares as they want at the low price and former CEO, who created the illusion of value at $1.40, vanishes into the night with a lovely separation bonus for the sterling job he's done and millions from the sale of the shares he knew were outrageously overvalued. In the words of the Chinese taxi driver "everybody happiness". Except, of course the hapless wood ducks like you and me. But alas! all is not lost as any day now Captain ASIC will ride up on his white horse and exact vengeance on those who masterminded this fraud. If only!

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Boy,this is dirty game .We needed a whole lot more than a banking royal commission,we need a royal commission into the ASX and why it continually fails to clean up insider trading and fraud in the ASX listed mining companies.

DCN Price at posting: 38.5¢ Sentiment: Buy Disclosure: Held
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