OMG

I don't think I've ever seen a bigger over reaction and panic stampede on the ASX than today with ODN shareholders. And so an Appendix 3B announcement no less? The company should issue an announcement to the ASX apologising for having such weak minder SH.

Here's what happened today. The company issued convertible notes to shareholders when they were literally on their knees with an SP of $0.001. The needed $245K to see if they could land something. So they issued 245 million of them. Last night, following shareholder approval earlier, they announced they had converted to ordinary shares, ranking pari pasu with existing. They probably announced it at a time that they thought would cause as little as panic as possible. All good so far. Most current SH's would not have realised this deal was done at the time (they probably wouldn't have thought much of it to be honest, they were too focussed on gridComm).

All of a sudden someone interprets this akin to a cap raising of $0.001, hence, the company must be worth closer to $0.001. That was in the morning. But most probably didn't fully understood what the announcement was all about. Most investors who bothered to do their research knew this was a deal done along time ago, way before the gridComm deal. So to them, it was not an issue (after all, without their credit notes ODN wouldn't be around today). So far, no panic.

In the first hour the CN investors most likely unloaded 10m shares at 2.5c (recouping their investment of $245K). Smart play. No one can begrudge that. They took an almighty risk that not too many people would have (myself included). Then, rumours started spreading that since ODN is a leaking ship, could the gridComm deal be off and those in the know dumping their shares? It must be. So some panic started to set in and a wave of DT or ST investors started to see the dumping happen (an additional 15m shares dumped in the last hour). Follow the leader, sheep herd mentality. What ever cliché you want to use.

So now the rumours are rife. gridComm deal is dead, management is fraudulent, shonky business has been done. It must be that, because there's no way the SP went down today because of shareholder panic over nothing.

Once gridComm goes through ODN will be re-rated significantly. It will be a going concern with significant cashflow. A lot more than it has now and definitely a lot more than it had 12 months ago

Keep calm