Bregitta My view is that if the DOW tanks so will all ASX shares regardless of potential! But if you need some comfort the Baltic Dry Index BDI is a very good "forecaster" of what lies ahead and thankfully it looks good at the moment! Now that is not to say next few days or weeks Dow wont correct.. All major commentators and those small guys like me "feel it in their water" that a sensible correction is well overdue..No not another crash just say a 5-10% correction!! Now other view on this is that when the majority expect a certain trend the opposite happens..hence "Contranian Opinion" often prevails ..but dont count on it!! So if that is not enough confusion consider this!! ESG has embarked on an SPP hoping to raise $40Mil which will be very good long term for the SP but short term these SPP's historically result in short term SP collapse and ESG is no exception.. My view is that there are far too many of us with limited funds who dont have the reserve funds to inject another $15000 into the company so the smarties sell out for say 98c to fund their new shares at 85c. Problem is it drives the SP down as evidenced today.. Sure we are all hoping the Company will make an announcement soon to send the SP skywards and lock in the $40Mil.. So far this has not happened but consider this -- Why would Santos pay $1.00 a share recently for 20% company if they did not think it was worth an awful lot more??
Finally (I hope this helps) My view is that the current SP has been sold down by under capitalised small investors hoping to make a quid out of 85c SPP combined with a bad few days on Dow.. Two minuses in this case dont make a plus!!
So hope this helps!! If it does please explain to me so I will understand too!!!! "s"
ESG Price at posting:
86.5¢ Sentiment: Buy Disclosure: Held
