corporate placement & share purchase plan, page-5

Haha! You always complain about me discussing the stock, yet I'm repeatedly addressed and brought in when threads start!

It's a vaguely interesting development. I think it's crafty (and impressive) that they got someone to buy a million dollars worth at a premium to the current price, thus making it look like a good deal to the lowly common investor. Obviously the reason you would buy $1,000,000 worth at a 10% premium is so you can avoid the market depth issues, but if you're buying less than about $20,000 worth it makes no sense from the sense of your own portfolio value, since you can buy that much cheaper. The only reason for anyone to take part in the plan with a small ($15,000) parcel is to act in a charitable way. Still, this company does tend to target the naive, so it will be interesting to see how many take them up on it.

Regardless of strategy and ethics, it's definitely a positive for the company to get rid of the LJ curse.

In the big picture this is just a bit of cash for the company to continue burning. If you look back at the two year chart a year from now I doubt it will look like much more than a small blip. Why you would buy shares for 22c when even before and immediately after the announcement you would struggle to sell them for 20c and could buy them for 20-21c easily is beyond me. Set on the backdrop of a shockingly disgusting chart, it would seem to require a very special mentality.

Having said that, companies often time these things so that a big positive announcement comes soon after the announcement of a capital raising. If that does happen and you are holding, obviously 22c may seem cheap. I'll believe it when I see it, and until then I'll be skeptical. Even if there is good news I would still expect it to be no more than a blip in the big picture. I'm expecting if there is big news it will be what management promised us by the end of last year (and it's now well into May!)