There is heaps of stock available for any punter keen to build a position. My concern with this is inexperienced guys read the posts on this forum believing that they can pick up a 30% premium by the time deal closes. Looking at the buy depth on WRM, if you had a $1mil position, good luck offloading that. The ones that bought into AUL in the capital raising at $0.30 have an average buy in of $0.38. I would bet a large portion of those would be sellers and if so they could pretty much knock it down all the way past that level.
I'm in no way suggesting this isn't a good deal from a risk reward perspective. I'm simply highlighting the market price currently is not as sure thing as many may believe.
If AUL goes under 30c, I definitely would be keener to build a big position.
WRM Price at posting:
53.0¢ Sentiment: Hold Disclosure: Held
