Why should fall the SP under the discout Price?? Can you explain...

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Kit83

60 Posts.

14/09/16

18:32

Post #: 19156160
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Originally posted by Blommer ↑

What did you take "cash neutral" to mean then? They have called it "cash break even" in the past too. Even pinto had interpreted that as meaning CFN.

I now doubt they expect to be CFN for the next quarterly either, or they would be promoting that fact. The reality is they have gone silent on CFN predictions. If the cash burn is flat at around $5mil per quarter (total operating and investing outflows) then they will be reaching the uncomfortable stage before year end. Last capital raising was carried out when they still had $7mil in the bank. Furthermore as Megs points out, they claimed no capital raisings unless they get a new contract and NC has pointed out that they now fully expect this to occur.

Capital raisings are well and good especially for the Long Term outlook, but we all know that they occur at a substantial discount to current SP and the SP tends to fall below the discount price in the ensuing weeks. I'm not sure how well the market will react if AJX is also falling below its cash generation predictions on top of that.

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Why should fall the SP under the discout Price?? Can you explain me that?

by a capital rise, the sp fall throug the dilution of additional Shares. How much that is depends on the volume. the rest is behavior (fear)from shareholders.

AJX Price at posting: 53.5¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 1.0¢		Change 0.000(0.00%)		Mkt cap ! $15.62M

Open	High	Low	Value	Volume
0.9¢	1.0¢	0.9¢	$1.321K	144.7K

Buyers (Bids)

No.	Vol.	Price($)
3	700627	0.9¢

Sellers (Offers)

Price($)	Vol.	No.
1.0¢	894264	1

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No.	Vol.	Price($)
3	700627	0.009
5	4595647	0.008
3	349012	0.007
3	544500	0.006
1	300000	0.005

Price($)	Vol.	No.
0.010	894264	1
0.011	1025000	3
0.013	240000	1
0.014	134311	1
0.015	431158	2

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Why should fall the SP under the discout Price?? Can you explain...

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Why should fall the SP under the discout Price?? Can you explain...

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