re: Ann: BRR Webcast - Bass Strait Oil Prepar... Hi Iona.In the...

re: Ann: BRR Webcast - Bass Strait Oil Prepar... Hi Iona.

In the Buy Early Sell Before Spud (BESBS) game, a capital raising always presents some risk. Nonetheless, the CR secures capital which is crucial and very much a positive in the case of BAS.
Sure, a large chunk of shares placed to one big institution can be a worry as they 'overhang' the market as you say. That said, I am always aware of that risk when I invest and actually assume that they could flood the market (better to factor in risk than not I reckon). Unless the market collapses, big institutions always want a decent profit - usually 20 to 25% is a minimum with these types of stocks) - so as long as you enter close to the CR price, you still win as you collect the rise to the SP that the institution sells. It is just a case of the amount you win. And if you get real lucky and they hold, you win even bigger. That is why I mentioned (in my post on why I bought BAS) the fact that the SP entry point was close to the CR price. It is essential in successful BESBS speculating.