One thing about selling a stock is you certainly begin to look at the directors of a particular stock in a very different light ... there are a lot of people peering through rose coloured glasses here right now.
Let me spell it out for those still a little unclear ...
Before any dirt is moved at Wonarah there is going to have to be money raised and that will need to happen in the next 6 months probably ... we have had a great broader market rally, the next part of that story could well be very different. The directors of MAK have initiated a takeover that once complete would likely introduce dilutionary pressure onto the SP of MAK at a time the SP needs to be as high as it can ie when you need to raise funds. There will be ex-BON holders now happy to sell with more volume around them. The directors have not acted in the long term interests of this company through this episode and now may well pay for it albeit given rock phosphate prices are out of their hands. It has illustrated a great deal of complacency in the worth of Wonarah.
Long term phosphate prices are going to be higher but we have to deal with low phosphate prices NOW when we need to raise capital NOW. That is the problem here ...
Bigger fish may well use this now exposed weakness to move but who knows ...
AEV Price at posting:
52.6¢ Sentiment: None Disclosure: Held
