AP was never TZ's tender to announce, and as they've said "not as lucrative as people think". The reason why the share price got smashed was because the company was talking up how AP was in the bag...nudge nudge...wink wink. Why not keep their mouths shut about other company's tenders?
AP was never priced into the share price thanks to the Vincent Tan et al selling, and therefore should never have crashed. Oh but it did. And Why? For 3 reasons:
1. The extreme anticipation created of a company making deal being created (which they now unofficially claim it never would have been).
2. The wholly unnecessary section created towards the end of the release where they are basically telling us that they never would have been profitable soon despite what they were previously saying, and to wait 12 months.
3. The increasing lack of trust in Mark Bouris and chums.
So what are the next moves? If they're anything like the company's previous moves, they will be:
1. Create anticipation of a pot of gold. 2. Raise Capital. 3. Commence sell down on that capital as point 1 doesn't eventuate. 4. Announce that there never was a pot of gold. 5. Sell down gathers pace. 6. Back to point 1. Rinse and Repeat.
TZL Price at posting:
10.5¢ Sentiment: None Disclosure: Held
