HDR palcement - insider trading big time !, page-41

Good posts Zac and Butcherano

In my view the simple fact that Banda is largely gas filled and came on top of somewhat less than conclusive results from Ching2 is the main reason for much of the fall, compounded perhaps by the general market malaise. The 5c drop from 76c is suspicious !

To my mind, any consipracy theories that suggest the placement price price was already known by a priviledged few before the results from Banda were in, really doens't stack up rationally or from the evidence. It's worth recalling that earlier this year Uncle Ted said he hoped to raise about 20m stirling in the UK/Europe (about AUS$55m), which at a 15% limit suggests he was probably hoping for a placement at about $0.95-$1. If Banda came in with, say, a gross oil column of 50m, I think we would have seen a spot price of around $1.20, with perhaps Uncle Ted smartly announcing he would feed the institutional chooks for $1.

Under the circumstances, I'm happy enough that Ted has put a conservative valuation on the stock now; it's a shrewd man that knows that if the chooks are happy they'll come back for another feed on another occasion, which (with some luck) will eventually benefit all who stay in the stock. And let's face it, unless HDR is swallowed up (which I doubt) it'll need a few more placements before they get some good, hard cash from their Mauritanian assets.