logical negatives., page-32

First 32 Last

Share
Profile

Follow
fotiosh1

86 Posts.

4

04/07/14

13:00

Post #: 13612329
Share

Originally posted by nordesmic ↑

Sensible thoughts fotiosh and I mostly agree. I'm not sure about the SPP being at a lower share price than today though.

My expectation is that (assuming everything goes to plan) the company will gradually release positive announcement hints as financing proceeds. That will allow the share price to rise as the market catches on. Then when a final deal is struck the share price will be at a more sensible level (let's say somewhere closer to 15 cents).

The company has always alluded to the fact that it is aware of dilution and the impact on holders. Even to raise $15 Million at these prices would mean issuing 50% more shares, not a good outcome.

Ordinarily the micro company gets screwed over in these deals but Kasbah has something that a lot of traders/users not only want but desperately need. The way in which all the tin traders jumped onto the register in 2010/2011 to me is an indication that the coming tin supply shortage is very real and not just broker/analyst spin. There is also the prospect of some competitive tension among these traders to get a piece of a deal.

This gives Kasbah more bargaining power than the market cap suggests.

The way the 8.0 cent offers artificially keep coming in to me looks like an attempt to keep it at these levels (maybe for an interim cap raising). I'm sure the company will be looking at other options before it considers diluting holders to all hell after a lot of the hard work has been done in the past 4 years.

Expand

Very good post, nordesmic. Cheers.

KAS Price at posting: 8.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

STX

Strike Energy secures $60 million for Perth Basin gas projects

TLG

Talga to form joint venture with lithium producer SQM to develop Sweden's Aero project

TM1

Shares up 196% on Terra's news of major reef discovery at Dante

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024