yes, because they want their money back so they can compound the return into the next discount they are offered. They are not LONG TERM investors. They dont put in, and wait for company to explore/ develop. They scalp profit. And the discount means they usually win. They dont give a toss about the company merit or value. It is simply time to move on, for their next profit trade.
Now if you had a rights issue to all shareholders, and there was a big dump, you could ask questions. But not when the selling is from those who are just here over the weekend, onto their next hunting expedition. And when they have freshly raised cash, there is no further argument of a CR expected.
Not all selling is rationally linked to the underlying value. When those who can influence the share price by selling, have all left the building, the rooms can be rented to a more discerning crowd who will have to pay fair market value.
In the interim, some sheep will sell at the same level that the previous irrationals did. That is the time for mine to accumulate at discount, because, cycles flow, and sectors re float. That is the market, Sheep sell at the wrong time, influenced by a discounted price, not understanding that is the time, to BUY/ HOLD, not cave into the floor discount.
MAT Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
