mitis, let us look at SGQ when it had less than 250,000,000 shares on issue and the SP was between .07c and.10c. At that time we had a minnow exploration company that wanted to test its acquired MA tenements for Ni/Cu sulphides.
To do that, they had to raise big bucks to survey long before drilling and then they had to raise big bucks to drill over several years for a range of promising results.
When the price was sub .10c, most investors would have been acutely aware that many CRs would be necessary just to get set for drilling and then some more CRs for several rounds of exploration drilling over a vast tenement.
A logical investor at or around .10c (who might be in for the long haul) would have factored in CRs/dilution at 50; 100; 200; 300%. They would also factored in SP appreciation on the back of possible positive intercepts.
If the investor bought 500000 shares at 10c, they will always have 500000 shares valued at what ever the Sp becomes over time.
They can deal with dilution ( a lesser share of the promised pie) by accepting their factored in CRs or they can add more shares at low entry prices to offset their lesser share of the pie. Or they can wait for a share price at multiples of their entry price x 500000.
Mate its not rocket science and it seems to me that the ongoing wave of dilution bleaters on SGQ either don't get it or don't want to get it.
Mitis, you asked me..... "So Mulac, do you have the financial capacity to keep buying in CRs to avoid dilution"
My answer is yes I have, but I am happy at the moment with my holding x a higher share price in the future.
Cheers
Mulac1
- Forums
- ASX - By Stock
- Ann: Quarterly Activities and Cashflow Report
mitis, let us look at SGQ when it had less than 250,000,000...
Featured News
Add SGQ (ASX) to my watchlist
(20min delay)
|
|||||
Last
2.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $27.21M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
SGQ (ASX) Chart |
Day chart unavailable
The Watchlist
EQN
EQUINOX RESOURCES LIMITED.
Zac Komur, MD & CEO
Zac Komur
MD & CEO
SPONSORED BY The Market Online