Merger Markets Article, page-11

The turnover is in reality miniscule. However this is an interesting conundrum. (I think it's a conundrum!). This stock is so tightly held that it moves sharply on small turnovers. Obviously anyone trying to "get set" at todays prices with a meaningful number of shares is unable to do so without causing a rocketing sp. The only way for a new player to get in realistically is to either do a deal with a holder off market OR get in a CR at both a reduced price and probably free options. The latter is far preferable in their view. And that is why I become so incensed when CR's occur without RI's so much as getting a look in. In my view, when we need capital AND a higher MC these outside placements are a two edged sword as they allow new investors to get in without assisting the sp and therefore MC. Not great. I do not say that the CEO's options aren't limited, and of course the sp usually drops a bit and one can buy more at the placement price or even better but NO OPTIONS. I quite agree that if the end result is a sp of $200 or greater (adjusted for dilutions) we all benefit no matter how we get there but surely it is time for RI's to get in on the fun?