Rowdy Why did people sell?? Well I did and to answer your questions - 1. Yes they needed to raise money and needed to offer shares under Market Price but 1c is 33% under Market Price!! Most new issues are half or less than that. No consideration shown for existing share holders. A positive annoucement was made just 9 minutes before new issue annoucement (Yes I know It was included in positive ann but who read that far before maybe buying in!!) 2. The previous Directors buying activites are of no inport to Day or Short term traders..Who cares?? 3. Who would want to risk putting more money into company now when SP is dangerously close to new 1 for 4 issue price. Is it not better to stand aside and maybe pick up as many as you want at say .09 if thats the way it goes if you are convinced it is such a good deal?? But if it does go any lower there will be no capital raising as it is not underwritten. Then what.. a further SP fall thats what!!This is probably why most people got out..better to live and fight another day LKO is not the only company with great potential!! i.e. ESG CTP LNC CNX !! 4. Why was deal not underwritten?? If it was I may have been tempted to stay on as at least there was a floor price. So why not? Bad management or no takers?? 5. So I and others left because despite any long term potential of company it was a silly move to offer shares 33% under current price. Those of us who sold can now sit on sidelines with capital preserved and watch proceedings and form new trading strategies accordingly.
So you asked the question ...dont shoot the messenger and maybe perhaps we may all learn from the future outcome!! I will learn even if I am wrong!! Don
LKO Price at posting:
1.1¢ Sentiment: LT Buy Disclosure: Not Held
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