There is no need to fear a CR provided that it is strategic and makes sense.
If it is plainly obvious why it has been done then it doesn't matter to my mind if it's at a discount or a premium. The market will react positively to it if it makes sense. Example is CATL or another major strategic investor taking a big stake. This would be obviously a good sign and anyone can see why it is a positive for AVZ. No matter what the placement price is the SP would react positively IMO. Same as the positive reaction to the prior strategic placement.
If the CR turns out to be a placement to a group of anonymous sophs (ie mates of the in crowd and brokers mates) at a discount then it will be seen for what it is, a gift to friends at a discount after the first hole results are known. A handy time machine to have access to. . If this is the case then the SP will take a heavy hit back to the discount placement price.
When the announcement is made this week it needs to be completely obvious to everyone and the market, why it has been done. If it needs to be reverse engineered and have some of the bullish posters here explain why it's such a good move then you know the market doesn't understand it either and we will see a retrace.
I am hopeful that the reasoning will be sound and they are making space for a heavy hitter and that the end of the week will bring some rewards.
Waiting with interest for it to unfold.
AVZ Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
