You guys are missing the point altogether.
There’s a mixture of people from both now-merged companies whom I consider to be ‘free loaders’ (ie in profit, expecially good profit) at current prices.
Any company can be held hostage when a large shareholder calls the shots.
To clarify what I mean here; Directors can be obliged to follow decisions made by non-hired shareholders who - in following their own interests - may not represent what is fair for all other shareholders.
- This already happens when big funds or brokers are privy to inside information ahead of the rest of the crowd.
In the case of AVL as far as I know the
only large shareholder on the register who paid substantially more than other large shareholders is RCF which has tipped something like $42m in since 2022 at an average price of somewhere between 2 and 3 cents a share.
That’s not an ideal situation given the fact that despite that RCF is way bigger than other holders, there’s clearly alliances between some large holders in the past
(case in point the merger deal which did benefit TMT ‘free loaders’ more than anyone else despite that RCF along with everyone else also got two extra AVL shares)
- why did it benefit them more?
Because they already had a control advantage with billions of shares given free or cheap!
Why is it better for larger holders to enter at higher prices than others in the ‘mob’?
• Because whatever they paid sets a ‘safety level’ the market may take note of
• Because the price they paid is often via on market purchases which gives genuine ebb and flow to daily trading (unlike what’s going on here at present)
• Because company devisions that benefit those kinds of large entities will generally benefit everyone standing behind them
• Because control is equalised.
A great case in point is over at Spartan Resources where the company was struggling and an initial supporter came in with $20m in exchange for shares priced at just 10c each.
The company’s fortunes turned around to the extent something under 10% of the company changed hands a few months back for more than 90c a share.
To me that represents a good balance creating profit for all with company directors leading the company forward unimpeded by private investors.
Junior companies mostly all start off with a gazillion free or cheap shares passed out to early investors.
When the weight of these ‘free loaders’ is greater than 50% I think it can be very hard for the company to move forward.
(20min delay)