It seem pretty clear why we have had such a big fall this week.
for one the markets have been generally getting hammered this week.
secondly we have have had 'so called long term holders' repeatedly suggesting that the stock price is going to go down, which in turn creates a self ferfilling prophecy because of the inexperienced investors who are influenced by whats posted on hotcopper.
Thirdly these same posters have been saying that no news is imenent, which is pure speculation, this cannot be known with any degree of certainty one way or the other.
Then chuck in a couple a couple of posts about the likely hood of a capital raising and there you have it.
Lets be honest here, speculative stocks on the asx are influenced by whats written on hotcopper, the management of Cedeco surely think so.
With regard to a capital raising in the near future, personally I think this is unlikely, there are other avenues open to ORD to get access to capital.
The last rights issue in nov 09 was a success in the fact that it was fully subsribed, but it was a total failure with regard to the negetive effect it had on the stock price and the length of time it took for the SP to recover.
Management are not stupid and they will be well aware of this fact.
The amusing thing is that alot of the posters who have been 'objectly' downramping this week were some of the same posters who were posting totally different views only a few weeks ago.
Nothing has changed fundementally with this company, the only thing that has changed is the sentiment of some of the more notable posters on this forum.
I think people new to investing and also hotcopper really have to question the integrity of some of the posters on this forum and not be to swayed by what they have to say.
regardless of of sentiment posters diplay at the top of there posts, you can tell whether they are holding purley on the tone of their posts. Only a fool would downramp his/her on investment.
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