MST metal storm limited

A couple of additional observations...Once this deal is approved...

  1. 2,793 Posts.
    A couple of additional observations...

    Once this deal is approved by shareholders, GEM and EEQ will between them receive a bonus 60 million shares 'for free' - a bonus let's say...

    And notice that the company will facilitate stock lending to GEM, 'to assist GEM with funding the advances' --- now I don't know how the company can lend shares in itself, so I presume they are facilitating a third party shareholder to lend their stock in MST to GEM -- but most importantly is why is this stock lending occuring -- there really is only one sensible reason, and that is so during the 15 days after each Draw Down Notice is received from the company, GEM can then use the stock it lends in order to short MST's SP, as by depressing the SP during these 15 day periods means GEM becomes entitled to a larger number of shares as payment for each draw down amount requested by the company

    so we could then expect to see some serious shorting, followed then by strong buying at the lower shorted SP when GEM need to cover their short positions -- in other words, we should get use to two to three week swings in the SP after each Draw Down Notice has been issued -- and what we need the company to clarify, is whether the market will be informed on the day it issues a Draw Down Notice, or if we are only to learn of a Notice having been issued fifteen days prior.

    All in all expect to see continued volatility regardless of how well commercialisation announcements may appear, as GEM has a direct interest in seeing at least temporary drops in our SP for it's accumulation purposes

    and this is the additional price we have to pay for getting this funding - so my earlier comments about GEM wanting to see our SP higher were premature - for the foreseeable future it is all about accumulation for them, so expect to see a ranging SP IMO

    good luck
 
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