"'Investor confidence' will drop like a stone if they don't sort out their bank balance. Recent buying has been more about the slew of recent, albeit very positive, announcements rather than an understanding of their cash position."
Possibly. It all depends on who has been buying, which goes back to what I said in my post on Friday. If the buying pressure has been coming from US based instos and sophs then news of a CR won't much affect the SP. If it has been coming from Aust retail investors new to the stock, then yeah, it could drop like a stone.
In the broader scheme of things the tax rebates and CHIPS funding are not large amounts, and further CRs are on the cards. The market response to news of this type might offer some insight into the nature of the investors who have been driving recent SP gains.
My feeling is that US investors have been buying after noticing BLG listed in the membership of the CLAWS hub, and that a CR will not phase them. But I could be wrong.
All IMO.
BLG Price at posting:
6.8¢ Sentiment: Hold Disclosure: Held
