LNC 0.00% 99.5¢ linc energy ltd

ONE big problem with big cap raising on a discount share price...

  1. 2,790 Posts.
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    ONE big problem with big cap raising on a discount share price is homey tuxedo investors and institutions buy large volume of shares at a discount and then immediately sell off and collect the premium. Say they get a 20% discount, they buy and then sell back making a 10-20% profit in a matter of minutes, the net effect is the SP gets backed into the discount offer price and even lower if it spooks all the other traders with the massive sell off.

    This is nothing new and is basically the way the world turns, Linc get their money, the brokers and investors get their money and the loosers are the supporters and long term holders. PB will come out and say well you all picked up your shares at a bargain and have not lost money...yet

    Net effect is dilution and smashed SP, i am going to sell now and pick them back up around a dollar.
    My two cents :) P

 
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