another tick in the box...

Another tick in the box...

This is actually starting to movce along quite quickly.

Ironfist, in spite of what you are suggesting about my vews on where a placement was likely, I have been flagging this event as being likey for some time...and whilst it was obviuslu not done for immediate cash needs, none-the-less, the cash will come in handu.

No...this was predominantly a corporate moves...they have set up the directors and now some key supporters, who have been clearly flagged via the options "incentive" to be very much aligned with managament.

I bought more on this announcement...lol...some at 14c and I am hapy to announce, the only one to have picked up shares at 13.5c today, although the balance of my bid is still at the top of 13.5c!

As soon as I saw the announcement, I knoew some dweeb would sell...for no other reason than...well...dweebs always sell when placements are announced.

In spite of the fact they never actually make money, these dweebs continue to follow the same patterns over and over...in the vein hope than one day, doing the same basic thing will result in a different outcome?

Anyway, for my views on today's announcement, following is a post from just a week ago. (I have highlighted the bit every obviously missed)...

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Subject: re: manipulative traders
Stock Code: CVI - CITYVIEW CORPORATION LIMITED
Posted: 20/09/07 11:41 Hotcopper Radio: CVI on BoardRoom Radio
Posted By: trade4profit - t4pblog Views: 392
Post #: 2123896 (In Reply to msg #2123409 from ironfist) Sentiment: Buy
IP: 121.220.xxx.xxx Voluntary Disclosure: No Stock Held

ironfist...

Really, in my mind you are "concerned" about nothing.

We have more or less just seen management, directors...even all consultants of the company...effectively buy shares at 15c, as this is what they need to pay for their options before they even make a cent.

The taxable value of these options has been calculated to be 6c per option according to the release...this has immediate tax implications for all recipients, but more importantly, means a lifting of the effective break-even price for them from the exercise price of 15c to 21c, as being unlisted, this 6c "value" will immediately be lost when they are exercised.

So, in being awarded these options, they are assessed for tax purposes of being payed 6c per option...when they exercise them, they need to pay another 15c, resulting in an effective total outlay of some 21c per share received.

At 30c they make the grand total of some $90k for every million shares held...not much reward for the benefit of all their time and efforts in moving the companies efforts forward and moving the stock some 120% to 30c.

In fact, I would not consider working for so little, let alone these people who bring significant and considerate experience to CVI's table.

It is pretty obvious the only way this will be worthwhile for these people is with a significantly higher share price...and to do this they need to limit dilution as mich as possible.

lol...they are clearly on our side.

The corporate play here is obvious to me...but it does not mean vertical price rises every day, nor does it mean dweebs will not lose money as they will on any other stock through impatience and buying and selling at the wrong times.

If you have a long term view however...at current prices there really isn't a "wrong time" in my view.

You only need to look at the share price performance of virtually every similar turn-around story to see what is going to happen here, but whilst we can make various assessments of likely timing, we can never be sure of the day-day activity.

Within reason however, timing is a non-issue and as "investors" we need only concern ourselves with the fact this stock needs to move from point 'A' to point 'B' at some point to make this wrok, with point 'B' being a price that will facilitate the plans of all those involved, from directors, management, consultants, shareholders...the market...and indeed even Turnberry themselves.

I look at my current share holdings in CVI, I do the sums on what they will likely be in as little as three months time...and the rest of the noise becomes irrelevant. So other than trading the volatile swings from time to time to "net increase" one's position, there is relatively little to be done most of the time other than to keep informed, keep ticking off the boxes...and wait for the end result.

In this regard, I find intra-minute commentary on who is selling...why...and where the stock will be this afternoon, or tomorrow, is really quite fruitless in the big picture...and frankly, the quickest way to psyche one's self out of the stock.

I have seen these sorts of corporate plays so many times before and whilst traders will clearly impact on a few points now and then, I don't think even the impact of the ever significant Krissbarry1 factor will get in the way of the corporate incentive here.

When they need it up, they will do so...meanwhile, I would not be surprised to learn the stock is currently being "managed" to kick off the first placement at current levels (at say 12c)...but with the proviso the recipients buy the same amount again on market, in order to achieve a 15c or so average.

Assuming say $2.5m at 12c, we end up with another $2.5m or so worth for an 18c average...or close to 14m shares bought on market...and a likely end of this buying stage with the stock well into the 20's, another 14m gone from the free float...and smiles all around.

This makes sense to me...and is not unlike what we see in many other stocks.

Cheers!

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So the key here is not the fact we have a placement and further funds to progress things...but a core block of supporters who will not only support their own buy price, but have been given very good incentive to rush it up due to their options "sweetener"...which for them will provide almost exponential returns from their issue price, to the extent buying on market will be highly advantageous to them.

Further, the breaks from the effect of both the management options and subsequent "placement" price have both been removed...unless you can think of another corporate incentive to hold the stock back, chances are it will not be.

Finally, I would not be surprised to learn this first rather modest placement has been rushed through prior to the Catabola drilling, not doubt on the back of what I sense to be a very high level of confidence here.

Interest to have such a delay on the commencement of drilling with little word?

I wonder if now that both the directors and the "supporter" block are on board, that we might finally see a start to the Catabola/Longjorno/Ucua operations?

Scene one was concluded today...act 2, scene one start from tomorrows open.

Cheers!