I don't understand the aggression towards mgmt, based on the current scenario. Anyone who's followed small o&g stocks for even a year must have noticed it is a common feature to raise leading into spud. The difference in this case is they did it during drilling, due to unforseen circumstances. Nonetheless, some have been warning of a capital raising here for quite some time now. Surely must have come under consideration for anyone analysing the company!? Unfortunately, thems the breaks with this industry. in case people haven't noticed, we're not in the environment of 12 months ago where equity raisings are done at a 10% discount.
While I made the decision to sell my JKA months ago, it was purely due to the market and I've been nothing but impressed with mgmt's ability to generate a diverse and potentially high value portfolio of assets.
I'll be the first one lined-up on Monday if the sp falls to the placement price, if indeed it is really 8c. The risk/reward is extremely favourable - even in this market.
JKA Price at posting:
10.7¢ Sentiment: None Disclosure: Not Held
