Odd I had the same thoughts a few months ago, but got howled down. Probably not articulated as well as you.
I averaged in at around 84 cents, and got stopped loss out at 68 cents, and took the loss, and I have observed since, as I do believe, like many who originally invested in EMC, that the FA seemed very good and so have been looking for a re-entry point. I suggest all think about the following points and draw your own conclusions:
1. It seemed everything changed after the merger. Less announcements, as apparently not all things need announcing, as too big a company now, but nothing of real substance has been announced since the merger. Small contracts, even if material, however, not really, when compared to the supposed bigger picture of what was indicated and implied earlier this year.
2. Real financial position, seems a moving target and not very clear, as I am sure RWL really don't want all their details out there. Therefore, I am guessing the timeline for getting it all done, that is killing off the listing on the ASX, is the end of this financial year. Just my opinion, as then no real detailed disclosure of financial data.
3. No significant institutional investment in the stock since the merger, as constant low turnover, except off market purchases, to probable friends, so obviously some bigger investors are wary.
4. RWL & co have very deep pockets. Given the current share price and the relentless selling, it would seem on evidence to date that it wasn't a 'merger', but it is possibly a very slow take over, which can be managed, without having a major shareholder announcement, and I guess at a much cheaper price with pressure further put on retail holders with the continual lowering of the price. I am sure RWL can afford it, as he gets what he wants at less cost. Just a guess, but the SP hasn't gone up, just continually going down, so something is odd?
5. One of the founding directors has stepped down, I wonder why? Not liking where the new merged company is headed? Who knows?
6. The merger idea at the time seemed 'to good to be true', step back and look at it again. Where has it got the share price? EMC was a spec stock and progressing, until the takeover. All news or progress have slowed to a trickle, since the takeover, no mention of what is happening in China, whereas, when we were EMC we seemed to be making progress, what changed?
7. Retail holders are just collateral damage, as always, and everyone is probably right, FLC is going to be a huge company, we just don't have the clout to control it, and probably won't be allowed to be part of it, just part of the journey to get there.
Finally, I should add that I owe an apology to
@dory, as it would seem he has been absolutely right based on the TA. I also note he still hasn't bought any shares even in the low 50 cent range, as he predicted.
This is my pure speculation, but I suspect he also probably is aware of what the market has obviously known all along, that this will drift lower till all retail holders have sold, and it quietly goes back to being a private holding, which was possibly the intent all along with the so called 'merger'.
I guess there will be some stubborn holders, as the FA is great. I will be surprised if FLC will be allowed to run on any news, or if there is much news of note. I hope for some of you I have it wrong, but the stock is doing some very odd things given its real potential, so even the market is not in control.
Just my opinion as always, and I am sure I will get hammered again. Trust me I believe the FA, I am just not trusting what is clearly trading on the stock market, so something seems very odd to me, but what would I know, I am an idiot it would seem, with just some very odd questions and observations.
Just to be clear, I am not down ramping, I really do believe in the fundamentals of the company, however, the stock just seems to be continually falling without any real reason. The odd question to answer, if so great, why is no one buying?
I originally put in around $45K, small I guess for some of you, but I didn't have the resources to keep sitting on a very clear downward trend, which doesn't seem to be stopping, and doesn't make any sense, well to me at least. I leave it up to you to make up your own mind.
Cheers
gsmaree
(20min delay)
