Escrow: I don't think shares coming out of Escrow is an issue at all. I agree that the massive holdings of Stroud and McConachie are a good sign rather than a bad one. In fact, it's one reason I bought in as it's an insulation against a compulsory takeover.
It is highly unlikely they would sell into low SPs. Stroud's background is with Macquarie Bank as a venture capitalist financier and project manager. He knows how to play the game and protect the company and IMO he will not do anything to endanger the company or shareholder's interests. Selling into a low SP would not make any sense on any level, quite aside from the fact that volumes are so low right now, they'd be flat out doing it.
IMO they believe in the project and are waiting for it to mature.
On LaJolla: I am pretty sure I read somewhere that as a condition of the agreement, LaJolla will take every effort to not depress the SP so they will sell into rallies rather than force the SP down. Unforseen circumstances may make this necessary but if Stroud has done his homework, there will be a series of announcements going off.
On context: The wider problem is the market, volumes are so low it is a bit frightening. Many have cashed in their chips and waiting on the sidelines and the appetite for risk is low. This could change. The situation in the US with QE infinity means bond holders and bank deposits are effectively earning zero interest, so they will start to pile back into the market. Inflation could also kick in.
The only way to look at this situation if you have faith in the technology, is as further opportunity to strategically accumulate. As I only have relatively small holdings so far, this is more than fine by me. But IMO you might have to adjust your expectations.
Good luck to all holders. DV
AEB Price at posting:
31.0¢ Sentiment: LT Buy Disclosure: Held
