“No-one has said it’s a catastrophe or disaster, that’s just you being dramatic”
Oh really?
That narrative has been pushed here for quite some time, actually:
“despite the obvious fact it [CR] will push the price below 10c”
“price would drop like a lead balloon”
“a CR, which anyone with an IQ over single digits knows is going to crash the share price”
“a CR which will burn shareholders”
“severe drop in share price due to a CR”
“AGY urgently needs to get production online before a CR is required or it faces disaster”
“it's [CR] going to devastate the share price”
“how painful a CR would be”
I think most here would recognise that a potential CR would probably be at a discount to the share price at the time it is announced, however, it is clear that no-one here knows when that will be, or what the price will be at that time.
The fearmongering message has been that “a CR trading halt could hit at any moment, and you don't want to be caught holding when that comes”, along with the repetitive similar message of “why would you hold, when a CR is expected”, but that blatantly ignores the fact that the timing and future sp are not known (the sp could actually be higher than the price today or a month ago or whenever those assertions were repeated), and imo is simply therefore a message by someone to prop their trades and/or make them feel better about their exit.
If someone wants to sell today, based on their speculation that a discounted CR will occur at a lower price than today’s sp, and they will be able to rebuy at a lower price than today, and that trade suits their risk appetite, then good for them! Simple.
IF we need a CR separate to the strategic partnership deal, imo that is hardly a big deal; it is not ideal, of course, but it will be an enabler to move into continuous/ramped production…. Which is ultimately where we need to go.
A bit of dilution and issue of shares at a discount is hardly the “disaster” that some have indeed claimed it will be, imo.
The overall, longer-term impact and what it actually enables, is what is far more relevant to investors than the short-term blip in sp that likely comes with it, imo.
Some might be convinced it’s a “disaster”; I’m certainly not.
imo
Dyor
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