armageddon.

OMG!!!

I've just read all Saturday's posts and I'm preparing for an Armageddon on Monday.
I'm just on my way to the supermarket to get some food, water, matches, batteries and cockroach spray.

Yeh right!!!

What is wrong with you guys???
Maybe it's the full moon that has affected your sanity!

Read your posts from 2 weeks ago.
Everyone was so positive.

Weren't you buying or ready to buy more at 4c+???
Weren't you singing praises for the management?
Weren't you hoping for the price to come down just a little bit so you can buy some more???

What happened in the last 2 weeks?

Did the fundamentals change???

NO!

The way some of you are writing would make others believe that the Co is stuffed, finished, the management is crooked and there is no future for Sultan.

This couldn?t be further from the truth.

Our Co is in a great shape with 3 great projects on the go and a strong and very proactive management.

Yes, each Co needs money and that?s why Sultan is doing the current CR.
As outlined in the Notice of General Meeting (Resolution 2.2 (f), the funds are being used towards our Project in Montenegro, North Project and Gold Project.
That?s great news because it shows that all 3 projects are progressing well.

The Co had 2 choices in which to raise these funds:
1. Get the current shareholders to participate through a rights issue, or
2. Issue shares to the institutional or sophisticated investors.

So why didn?t the Co do the rights issue to the existing shareholders?
Maybe this will explain it:

The following extract is from the ASIC website:

"Companies these days quite frequently sell additional shares to raise money through 'share placements'. These are offered only to institutions and sophisticated investors. Companies may invite existing retail shareholders to top up their holdings, but only up to $5,000.
Read why:

Share placements allow a company to raise up to 15% of their current capital base:
? without seeking shareholder approval and
? without going to the trouble and cost of a formal prospectus.

In the past, companies have sometimes struggled to raise money through the traditional offer of rights to subscribe for more shares, called a 'rights issue'. They often had to pay underwriters sizeable fees to make up for any shortfall in the money raised this way.


As the Australian market has grown, companies have found institutional and sophisticated investors willing to come up with extra capital, often in large amounts, within 24 hours. Generally, institutional and sophisticated investors invest at least $500,000.



Many companies believe the speed and cost savings make placements a better choice than a traditional rights issue.



Investor protection

The Corporations Act distinguishes between investors who need protection (through a regulated disclosure document) and those who do not.


Parliament considered it necessary to have 'prospectus quality' information for retail shareholders. A full prospectus must contain all the information these investors or their advisers need to decide if the investment suits them. Information of this quality costs time and money to prepare. To prepare a prospectus often requires planning some months in advance.

On the other hand, institutional and sophisticated investors are assumed to have the ability and resources to:
? analyse market announcements and financial information and
? make up their minds quickly.
In a placement, institutions get only limited information from the company, and they must make snap decisions over large amounts of money. That's not so easy as it sounds, and even institutions can make mistakes. For example, if the placement is helping pay for a takeover, the new business may prove far less profitable than originally expected, causing the company's share price to fall.

To reduce their risk, institutional investors usually seek a 'discount' to the current market price of the company's shares in case the market price falls after the placement is completed."

I hope the above extract explains why the Co chose not to do the rights issue and why do they offer a discount to the SI?s.

Now to the price of the placement.
Again, some conspiracy theorists claim that the Co has intentionally pushed the SP down before the placement so their friends can get in at a cheaper price.

What a total nonsense!
Would you intentionally lose $4M to let your mates make some money?
I doubt it.
The Directors hold about 200M shares. This means that for every cent the SP goes down they lose $2M. Over the last 2 weeks the SP has plummeted from 4.2c down to the current 2.7c. That?s 1.5c and a $3M loss.
If the SP goes down to the claimed 2.2c then they will be $4M down.
Intentional? I doubt it.

I have spoken with the Co the day after the Monty announcement when the SP went down from 4.2 a day earlier to 3.3 on the day of the ann.

I can assure you that the management was furious about it. They absolutely did NOT expect this outcome.

I am sure they planned to do the CR at a much higher level then we are right now to minimize the dilution but maybe they were simply not ready to proceed and didn?t expect for us to be at the current price level.

Where to from here?

Simple!
You want to sell? Do it.
Don?t let anyone stop you. It?s your money and you have every right to do with it what you please but before you do it stop and think.
Is this the right time to sell?

Maybe those who are preaching doom and gloom are those who sold out at a higher price and now are trying to get back in at a lower level.

Many have already said that they will put their buy orders lower in line in case the price drops to that level.
Great. If we all do it, (with a genuine intention to buy), the SP will not go down very far and those vermin BOTS will not be able to play their game.

Who knows, maybe the SP will go down to 2.3/2.4c.
Maybe it will. So what?
I am convinced that within 2-3 weeks max, the SP WILL be back to above the current level.

Fundamentals don?t lie!!!

I am already loaded to the hilts but I will be selling other stocks to buy more on any dips so if you are selling, thank you, as I will be buying.

And if you want to feel optimistic the way I do, turn up to Co?s meetings and have a quick chat with the management. You have every right to do so.

No, you will not get any inside information but you will get a feeling of how dedicated they are to building our company.

BTW, as already reported and advised at the last Co meeting, our MD is away o/s and Milos is also going there to meet him.
Guess what?
They've gone fishing but not for fish. LOL

That?s just my opinion and you do what you want but think before you act.

Remember, don?t become a bunny.