For RCF, and their board at AVL, this is clearly an key opportunity to relaunch the projects and reset market perceptions in a very positive way.
The first impressions of AVL+, influenced strongly by what's communicated this coming two weeks, will be confirmed by the market response the moment trading opens again.
If the relaunch is a non-event, a damp squib, or a shifty and nonsensical, the new AVL+ SP will fall. A material SP drop on open will stigmatise the new AVL+ as a dog share.
If AVL+ rises decisively, as it logically can, at least initially return to the pre-takeover marker of 3c, then a positive market impression will be reinforced, and get on a roll. New potential investors will notice the opportunity, take time understand the prospect, buy in.
So totally, it's crucial that RCF/AVL send out strong, credible, positive signals at this key juncture. This coming week.
Clearly, they've been planning for this moment for the last two years, and, surely, have extensive studies, have generated and reviewed options, scenarios, business-plans and ultimately have a compelling, credible plan forward to share with investors.
Yes, decisively cutting out the management fat, unnecessary expenditure, and mates free-riding is one powerful signal RCF/AVL+ can send to the market. A message that say's we are serious.
It's part of sharing a vision, and a plan to go forward, which credibly addresses and is driven by the real opportunity, created by our exceptional resource and the evolving world economy.
If RCF wishes to support the MC, RCF/AVL+ needs to signal that.
Anything else might suggest RCF is playing for a long term acquisition - a two year hiatus - after which, posing as a white knight" -they can acquire a valuable, well-advanced resource for a fire-sale price. Sorry, we've all seen this gambit play out - and I've experienced it on several occasions.
Regardless, even in the short term, if AVL+ is looking for a CR, they'd be wise to relaunch as a credibly exciting opportunity, get their SP out of the take-over ditch, rekindle some SP momentum.
Equally, if AVL+ don't want ex-TMT SH's to flood the market with paper, and crash the SP, giving it a seriously doggy stink, engendering confidence in the new management will be crucial.
Don't betray this opportunity. Shout it out loud!
My "dream scenario" is that RCF/AVL+ and gang show serious commitment, and do some highly positive PR these coming non-trading weeks, and AVL quickly moves back to 3c.
Then, with that very positive impression made, the SP continues showing real strength in line with AVL+'s phenomenal potential of being a leading supplier to a new emerging global power system.
Confidence engenders confidence. Success engenders success.
Perhaps, on 02 Feb, we'll make the top of HC's Gainer's list - 50% in one day. A wish perhaps, but quite possible.
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