The shareprice weakness of recent days is very likely to have been caused by the selling of the 42m shares Novus and their friends elected to buy at 1.7c from the shortfall in the cap raising. The fact that they took this instead of allocating it all to existing shareholders who applied for shortfall is something I believe ASIC should look into. If its not against regulations, it should be.
My refund cheque (from my shortfall application that was only partially filled) cleared today so I have bought more on market at 1.9c. Leaves a really sour taste that I was probably sold to by Novus (or their friends/clents) as they pocketed the difference between 1.7c and 1.9c as virtually risk-free profit.
I don't think the recent selling has anything at all to do with perceptions of the company's oil fields - just pure supply of stock overhanging the market. I remain an enthusiastic believer in the company's prospects of becoming a profitable producer very soon, but disappointed in the company's handling of this and previous capital raisings. They need to use a firm other than Novus next time and ensure they show more respect for existing shareholders.
GGP Price at posting:
1.8¢ Sentiment: LT Buy Disclosure: Held
