The last SPP in may 2009 was for 3 million shares when the Placement put out 7 million+.This SPP was not fully taken up at 90 cents.I didn't take them up because I was full up with 70 cent range shares.
dock Placement Shares are NOT tightly held.They are usually turned over pretty quick out of the hands of Sophistos to us 'mugs' at a premium. Today's Volume at a 5%+ Premium to Placement is an example. That's Sophisticated,dock,getting 5% in a Day.
$1 is NOT now Support.Shares often trade soon after a Placement Below the Place Price. In fact,the Sophisticated can be willing to Dump their shares at a discount to their'buy'. Why?because they may have another 'deal' presented to them,they might get a Margin Call,stuff like that.
Don't be fooled by this term "Sophisticated Investor". They aren't Geniuses,up'n'coming Warren Buffetts.
No they are simply High Nett Worth Individuals[known to have at least $1mil liquid] approached by their Broker to 'front' cash to a company without having a Prospectus made to them. They don't care about the Company as such but more about their Discount Price for Bulk Numbers of Shares that they hope will turn a profit.
I read once here at HC a trainee broker type saying the Average Sophisto is going for 30% IF they just don't stag their allot for 5%. This means that there is a proportion of 12million shares newly issued 'raring' to sell at 130 ie Likely More Sellers than Buyers at 130 ie Resistance.
Anyhow let's hope that some of the $12mil raised gets spent on Proper PR AND getting Significant Cash Flow Happening so any future placements are at a much higher price Range or,better,Not Needed.
What have we got now?150 million shares on issue?Not so long ago it was 80mil.and the share price was then still round $1.
GET ON WITH IT,Ricky Caldwell!!
GSL Price at posting:
$1.06 Sentiment: Hold Disclosure: Held
