RC finally understands the systemic downward pressure the equity line of credit has had in the absence of solid progression toward actual material sales.
DYE is now financially in a weak position and is taking positive steps to get a turn around in SP. I was looking to participate in the 65c SPP that never happened. A 18c SPP is no doubt a better deal and will hopefully be the last dilution before the SP turns higher. It will be interesting how much they raise as this will be a measure of how many true believers are out there.
The SPP raising and operating cost reductions (30%) should allow DYE to continue to live for a while without sales. Hopefully non diluting funding from the Government will be available once those schemes come into effect later this year.
The SP will trend towards 18c (in the absence of positive news) as existing shareholders who are inclined to accumulate wait for the SPP and those looking to raise some cash sell.
Once the SPP is complete, we can assess whether the SP bottom has been established. Anyone selling after the SPP is complete will be due to loss of confidence as apposed to systemic destruction of the SP by Bergen/Springtree.
GSL Price at posting:
20.0¢ Sentiment: LT Buy Disclosure: Held
