There has been some good posts by good people here.
Draig is a long term investment, and will be successful IMHO.
The frustration of some is simply a need for immediate success, and unfortunately, expectations have been fueled by recent short term trader/broker share price manipulation and volatility.
Some honest medium to long term investors will always be caught by these traders and brokers, and the spikes in share prices that they coerce.
With the consolidation, Draig will become a mid-size player, and one that is firmly focused on production, in comparison to many other ASX listed speculative coal companies who are never going to make it into production.
Draig will also have other acquisition opportunities in Mongolia and Indonesia, hence the need for a substantial capital raising.
The future and growth of this company will not be controlled by brokers and underwriters, the leadership will not stand for it, but that does not mean that they will have control over periodic algorithmic trading, or price manipulation by traders and brokers and finance houses and banks (the greedy 1%).
My personal belief is that the consolidation at 20:1 is not what Draig would have preferred, but their hands are tied by the listed options which have to be at 20 cents.
What could they do?
You have to thank the ASX/ASIC for these stupid rules, which the ASX/ASIC will not budge on. Don't blame Draig for this, whatever you do!
I would keep an eye out for some further corporate financial gymnastics in April next year when the options are concluded.
My understanding is that the fund managers in Hong Kong and Singapore really like the Draig story.
You may find that a listing on either of these exchanges is announced, post April 2012.
Sometime in 2012, you may also find the announcement of a large international coal company as a cornerstone investor.
Draig is being watched very carefully (especially from afar).
So for now though, it's onward, and upward (eventually).
Gw
Do not complain about your life. Do not blame others for things you have brought upon yourself. Be content with who you are and where you are, and do whatever you can do to bring to others such contentment, and joy, and understanding that you have managed to find yourself.
(Alexander McCall Smith)
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