GarveyThere has been a lot of trading between related entities...

Garvey

There has been a lot of trading between related entities hiding behind the threat of DKR selling. This has enabled the shareprice for these transfers to be held down as real buyers were expecting/hoping for a DKR dump. It now seems that DKR were intent on obtaining a fully funded 5% of the company paid for by the sale of about 4 M of their shares at about $5 average. So there may be no new shares available before the placement. We will all see financial details (probably not names) in the prospectus and certainly will see the expected placement price. Since there are not likely to be many shares actually available on the ASX then the CS clients will be expecting large parcels presented to them (at a price). The local price should rise towards the expected placement price on market. It may not reach it because there will be a premium for volume. Any of the parties wanting to top up their placement allocation wil be in the market and so will a lot of others since the risk premium at that stage will be minimal. There may still be a $5 difference between the bulk placement offer and the final ASX price. This price will be offered by CS to local holders wishing to sell in the last 10 days after ASX delist. CS is not after your shares and has not been after your shares to date. As underwriter they are obliged by the ATO only to guarantee a market in the interim period between listings. Why would anyone wait until that time to sell if they want to since they could sell on market at the same price a day before delist? There may be no shares offered to CS at this time. It will be good to see more details but all of us will see them at the same time. The less risk premium you are prepared to carry the higher the entry price you will have to pay. As that premium is eliminated due to the certainty of listing in a market with a much larger pe then there will be a flurry of activity by existing holders borrowing begging or stealing from their childrens' piggy banks to top up at the end. They and everyone else will by then be expecting a 2-3 fold return in a matter of days rather than weeks!