capital raising bad or good, page-24

G'day
Yeah all sorts of worries
The patent issue?
Tincom funds not forthcoming, so maybe tincom changed their minds?
No cash? (forgot to mention this in my previous post)

These issues seem to be resolved, patent issue side stepped, tincom going full steam, cash from La Jolla for operating costs

Current concerns
No directors buying shares
Will La Jolla dump for a quick profit and drive the price down, even further.
The share price (must be a lot of retired bulls)

The reasons why directors buy, sell or don't sell or buy are many and varied, often poorly timed but there is a nice warm feeling if they buy.

Re La Jolla it would seem unethical for LJ to push the price below 2c (just a thought, who knows)
What's their MO? Many possibilities, all stock dependent and probably market dependent, with contingency plans.

On the positive, supposedly, based on this one deal, ESI will be making decent money by 2014 with CPI indexed income of $20M by 2020 with 10% free carried equity in a $100b(?) project (profits etc). As another bonus and vote of confidence JC Steele is going to build the new scaled up pilot plant for free.

I compare this to other deals, cap has a great deal for instance. Another company with resources based in SA and JV partner has a market cap of $5m, potentially huge profits. However even without day to day costs they are needing $44m for BFS and then a further $150m for share of infrastructure. This means current shares will be diluted to 4 fifths of 5 eights of you know what. ESI just have to keep things ticking over and get more binding agreements, with relatively minor dilution

ESI's deal looks great and now being used as a template for future deals (if they come to be, fingers crossed)

All the recent uncertainties may have presented a great contrarian buy opportunity (this is my current view) - or maybe not?

Timing may be difficult on this one perhaps.

Gee that's a lot of words for me, apologies - merry xmas and a pleasant 2011 to all

cheers
Rod