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78.0¢ avz minerals limited

Agreed. Lawyers get the windfall, shareholder max of $300 bucks...

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lmckenzie2

592 Posts.

153

21/12/22

14:34

Post #: 65401112
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Originally posted by mondyinvest: ↑

I have modded my earlier post, on reflection perhaps my comment was unfair (and as @Sediaws notes I should have presented it as opinion not fact, poorly worded). Their market cap around 30 June 2021 was $480M verses $2.75B at 30 June 2022, so the percentage increase in the premium they paid for their D&O insurance is commensurate with the increase of their market cap (if that is in fact how it works). I'm personally doubtful that that is the sole reason for the increase, but that's just my view. Anyway, the point of the earlier comment was that I don't think a shareholder class action will do much good for shareholders, it only enriches the lawyers charging the fees. Even if AVZ had a $100M D&O policy limit, that's still not going to go very that far if the stock eventually opens say 25% down or worse and wipes out a lot of shareholder value. So as much as I thought it was likely these would arise, it's hard to see anyone but the lawyers winning out of that scenario.

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Agreed. Lawyers get the windfall, shareholder max of $300 bucks apiece. That's why these firms are so eager to take this stuff on. They win (see fees) even if they lose in court.

AVZ Price at posting: 78.0¢ Sentiment: Buy Disclosure: Held
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