I’m not a holder anymore but want to be but this 100:1 gazumped me.
It’s a European and American thought process to like stocks that trade in the +50c range. That value also also puts a share on superfund watch lists.
BUT, consolidating does NOT change the underlying company Market Cap nor the operational fundamentals.
And unless accompanied by excellent ASX releases or a concerted and CONSISTENT pump it will drop the SP way below original value.
10:1 is much better as allows small holders flexibility to trade part of holdings. 100:1 pushes them out.
10:1 still leaves 300mill shares which is the sweet spot for ASX junior developers.
And note the pump - who pumps and accumulates shares? PA’s guys in UK. That’s fine to buy on market.
But then to the Cap Raise and Placements and SPPs Vs RIs and again see the process of sneaking takeover of a burgeoning mine at low cost when we all took all the LT risk.
PA rang me Saturday night and talked for an hour. We will meet privately. He is definitely putting in the hard yards, and apparently for free however:
1. Why for whom, why for free 2. How does Tom feel being micro managed? 3. Hrs financial but a director onsite every minute inside every decision 4. For instance the SMS thing, madness, hey do that in your business and see what happens
If I was Tom I’d quit immediately. PA can’t be in there second guessing everything and telling all the boys and Tom what to do. Tom first and foremost is making sure of safety etc. think about this micro manage process.
No doubt he feels he is helping, Hey maybe some of those miners should likewise get a chance (perhaps Tom) to go tramping around the Boardroom making changes to the tea setting, no better the Cap Raise.
I know I’m sounding very condescending but it’s all very transparent. Even putting McNally on the Board which I am all for but just like Tom, now me, you on Monday and McNally can’t you see the plan.
Keep your enemies close, squirrel in, control them.
What do you think happened at AVQ, OGX, CTL etc - money men taking over the MD role.
Think it through.
Take care not to be convinced.
Slow down his talking, think about every word. Stop the fast ramble and tease out a bland statement before the next.
PA is a Lawyer and Financier. He uses rapid fire Socratic logic to race your mind through his proposed logic so at the end your brain thinks he’s convinced you.
Take great mental care.
I have stated my rationale to assist Tom with technology (sorter) with more mine feed (A1) with capital (RI) with governance (McNally).
PA has offered micromanagement (inside Toms mandate every second (early mornings, SMSs etc) undermining every decision infront of the crew. Staying at the pub at the bar no doubt talking at 100 miles an hr about the ops and about what he’s doing to save it.
Perhaps we should have him come micromanage you at your business.
Again, think this thru.
AUL Price at posting:
0.4¢ Sentiment: Buy Disclosure: Not Held
