"Wouldn’t you agree?" I guess Id have to say. I dont. Mainly as the thoughts presented dont really hold up against whats transpired. Let me offer some examples.
:Unspoken rule of MD’s of small caps. Reinvest 5-10% of your salary into on market shares. Looks better. They still pocket plenty of cash" I assume you have noted the MD sold shares and bought in again at discount and then with more additional funds? Appears to be a small holding trade out of a larger longer term holding. The MDs holding here is vastly larger, by far, than youd see in most companies. I assume you have noted how much this is. He certainly doesnt need to invest anymore to prove hes fully financially involved. As equally as its obvious hes made a loss much as any other. This is what we know as a fact. I am not sure how your theory sizes up given this. As no one in their right mind would invest more funds given that loss, and given they had proved their backing, unless they thought it worth the additional funds. Surely thats more logical than anything else
"but feel that this money is to pay the bills for the next two years at a 20% dilution to all holders." Have you had any clarification this as being accurate or is it based solely upon your feeling?
"A competent MD would raise capital after the share price 4 bags near 8c whether they need it immediately or not" If a company requires capital. Surely it will raise as required. There is not really another way around that.
The share price flitted at 8 cents on a day where it closed more toward 5 cents. So it would be impossible to suggest to the market 8 cents was a cap raise price absent having all holders disinterested and a failed raise. Even if they did try.. Id assume youd perhaps see that equally as bad management too. So either way I assume youd be dissatisfied really. Its a hrder game then it looks in hindsight. But I understand why beyond this why they held off. However that will take time to list.
The reason for the slide in price is the external delays beyond management control and the market recently holding new caution due to the Ukraine war. Expecting management to predict either of these events arising in the world. Would be rather impossible for them to predict in actuality dont you think? Many such companies are down in value. I dont know many who predicted Russia going to war.
I quite understand if you may have lost funds. So to then be keen to assume the worst . Perhaps even to feel better from the loss. But shouldnt we also try keep in clear sight of all the facts we have seen over this timeframe. To understand the true scale of the projects true worth. Keeping the balance may be best. Over perhaps being lost in the emotion of any other that clouds such insight.
Remember its those who can hold a balanced view of events during the highest levels of doubt and sentiment in the projects with the most potential. Who often come out ahead of the market.... once it all turns around.
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