daytrades feb 17 afternoon, page-140

ECM - I went back and read the AGM meeting transcripts. The 300 Million placement shares have to be issued within 3 months of the meeting, which was on 29 Nov 2010. So that leaves only 11 days, or until the end of Feb for this to occur.

The placement will have generated $9 Million, but my guess is that the company will go into a trading halt next Thursday, and announce a new project for the funding the following Monday (28 Feb).

Obviously, without the announcement, the share base would go from 174M to 474M and the dilution effect would be bad for the share price. Only a positive project announcement can prevent the sp tanking.

Choices - sell between now and next week into the strength shown during the last two days, or hang on for the dilution and announcement and see what the company will be worth further down the track.

Anyone have another take on this?