shareholder sees red

http://www.theaustralian.com.au/business/city-beat/old-chum-to-take-it-a-bit-easy/story-e6frg9no-1225949647583


YOU know a company's on the road to riches when small shareholders grumble about missing out on institutional share placements. Bill Pike, a Hunter Valley resident who speaks for 3 million shares in a Perth exploration tiddler called Red 5 Limited, is stirring up shareholders about the fact that only the big players got into an October 14 placement at 17c a pop and the price is now 20c. It doesn't sound like much until you notice that's $90,000 he's not ahead. Red 5, run by a bunch of ex-Normandy Mining execs, is developing the Siana gold project in The Philippines that has just got to bankable feasibility stage.

Pike also points out in a letter to shareholders that the price was 22.5c before the announcement, so he's had the worst of both worlds. He's looking to knock the deal, Resolution 10, on the head at the November 23 AGM "until such times as the constant dilution of our shareholdings is addressed by a shareholder share placement". It's a curly one since small companies may not have the time frame available to offer an equitable placement. A second question is, if this bloke who's about the 15th biggest shareholder with more than half a million dollars' worth of shares doesn't get a call, can you be surprised?