Hi wbn,I am pleased to offer a perspective of a LT holder.My...

Hi wbn,

I am pleased to offer a perspective of a LT holder.

My view is that EGR is on its way to a Market Cap of 1 Billion plus at a SP of circa $2 within the next 2-3 years (some say sooner). If I were to sell now at $1, I would have to hope that the SP retraces to $0.80c to cover the tax bill, then take the risk of being able to buy back the shares without paying overs.

I have drawn a number of lines on the charts representing the maximum prices paid by those who had been trapped by previous failed breakouts. The price has now cleared those levels, and the trapped holders may well be flushed out already.

Amongst those who have bought in during the current move below 60c are sitting on profits or maybe they have already sold. Additionally the sophisticated investors who have participated in the CR may have already sold in recent days in order to cover the placement costs, and again, if so, attracting tax. And if the sophisticates were to sell, then I am reasonably confident that they would prefer to take $1 than $0.62c, so the exit may be more orderly than the retail investor.

In short, while there would obviously be some downward pressure from the new shares, it may not be as significant as some may have you believe. I think the downward pressure would come from market makers who would from here like to see an accumulation zone in a lower range. There may be some downward pressure from those that may be trapped since the gap up if the market makers test the support levels.

There are good resources on You Tube about accumulation and distribution modes which I have found helpful.