Damned if they do damned if they don't (RBI approval of ABY takeover).
MLX share holders have seen their holdings diluted without while YoY ROE drops. Cookie's been selling out equity like it's an infinite resource with no regard for existing shareholders. Every time he makes a purchase existing shareholders have to either increase their holding e.g. buy further into the expansion strategy or see the size of their holding decline.
This extract says it all:
"As at the date of this announcement, the Group’s holding in Metals X has been reduced from 21.7% to 20.8% following the shares issued by Metals X pursuant to its takeover bid for Aditya Birla Minerals Limited and will be further reduced to 18.8% if the current bid is fully accepted and completed."
MLX is so heavily invested in this expansion that the stock now carries a lot of risk. In my personal opinion I suspect some of the more conservative investors will be reviewing their holdings and the speculators may be stepping in.
Volatility a-hoi.
MLX Price at posting:
$1.06 Sentiment: None Disclosure: Held
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