Ann: Newcrest Exercises Top-Up Right to Maintain 9.9% Holding, page-14

Two things.

First one:

A lot of sophisticated investors will sell, maybe not on day one, but it will keep a lid on the share price for awhile, or at least until an announcement or a liquidity event.
(Thus my betting is that drilling results will be this week, or a an announcement on the go ahead of phase 2 drilling)

They will sell, and it has nothing to do with AZY or its prospects. For a lot of sophisticated investors, that's their business, take an allocation, in a week or two sell out for a 10% plus profit (hopefully) and take on another allocation. Some work out some don't

They have to sell, because they get a better return by churning their capital, they get offered maybe a deal or 2 each day.

If they have oppies attached even better, as even if they get out at evens within 2 weeks, they get a free ride with the oppies.

Again it has nothing to do with AZY or its prospects, that's their business, and its encouraged by the sponsoring brokers so their clients have freed up capital to do the next one for the next resource company and so the brokers earn their fees too.


Second Thing

Interesting article in the Australian Financial review = "Meet the Forrest young gun who shot down BHP"

Anyway, goes on and talks about Wyloo and its deal making and thinking, and who is behind it.

One paragraph that stood out is this, and keep in mind the recent events in Greatland Gold.

‘‘How many times have you seen private equity fund another company to buy a stake in another company because it looks interesting to put the two together?’’

Giacovazzi says.‘‘I don’t think there’s anyone else in the market that could do something like that.’’


Interesting, will let you ponder on that one, it will take time, but they do have a plan.

Enjoy the weekend