It is not short sigthed... I review some 1100 quarterlies every 3 months and without a doubt this was once company that stood out back in April along with 2 others (RCL, RZI and GLH which I have also been accumulatin). I was going to try and meet with management prior to making an investment decision but I suspected a cap raise was coming. Before I could do extensive due diligence, a cap raise came up. There were a few reasons I was hesitant to invest including: - the lead broker - the free options - the share price (I hate stocks that trade sub 1c as it requires significant movement in the EV to buy or sell) - not knowing what the debt deal was
I made a rash decision and bought in but seeing the way the debt deal was done just said a lot to me about management so decided to move on. You can take a look at my commentary on HC about other stocks I do hold and you can see if I have held for years. I am not in anyway saying that this business is crap, matter of fact I think the underlying business looks solid and they have a good plan in place, but the way you conduct equity raises and debt deals matter and unfortunately it was a pass for me.
I do feel for retail holders in situations like this as they are now stuck with other investors like me who are happy now to move on at break even and ride the oppies. I am 99% sure I would not be the only one doing this now as you can tell by the constant trading between 0.8 and 0.9.... tell tale sign! I am not a big fan of companies that offer oppies. It can just put a real halt on the rise of the SP.
PWN Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
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