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09:23
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Originally posted by Flexitime:
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I will start by saying I think POD have a fantastic resource which is currently undervalued, especially when compared to its peers. I also think that this project has a good chance of eventually becoming a mine and at that time the share price will be much higher. But...and there is always a but, I think the share price will find it very hard to rally from here for a good few months. There is no near term catalyst to push prices higher and the current capital raise has been poorly conceived and executed. I understand that small cap mining exploration companies need money and that current conditions have made this a difficult environment in which to raise capital but POD seem extremely poor at executing these raises. There seems to be a strong leak of information prior to them going to market and then this particular raise seems like it will fail to garner the funds that they are requiring. At current prices a 1-15 entitlement at 22c is unlikely to be taken up by any existing shareholders. Why would you when you can buy on market cheaper. It is also NOT underwritten so there is no broker supporting the raise. And the offer is open for another two weeks. This means should the share price at any time go above 22c then current shareholders will sell it back down again. So in essence it is not a $6.6mio raise but a $2mio raise. And that $2mio was flagged to sophisticated investors prior to their commitment thus enabling them to sell down shares from the high 20s to where we are today. The timing has also been unfortunate. The market has had a bit of a bounce in the last week but POD hasn't participated due to this cap raise. Management can't be blamed for the timing (and they have done a heap of PR lately to try and push their story) this but it is frustrating.
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Hey mate, Yes, nobody is going to be keen to buy in when you could get it cheaper, so that's a challenge. However, the sell side is still relatively thin, and any real volume will push this up. I've been here 6 months and there's really very little on offer. As a result, anyone with some deeper pockets who is keen on taking a position will find it tricky to do so at a discount. Furthermore, if you believe in the project and wanted in, you'd rather see the cash go to the company, in order to better support potential success Secondly, there is a potential catalyst within the next two weeks... we're still waiting on more drill hole results, and importantly on Ir and Rh assays.... these figures could provide a significant upside, in turn increasing buying action, and again, leading to us drifting up from the 22c mark. Obviously the critical dependency here is to get the results in time!
