Well, yeah. 3.6 cents close.
I learned a long while ago that when a company does a Capital Raising at a "discounted" rate the SP usually drops to the CR price, and often lower. Not always - sure - but I'm struggling to think of a micro-cap CR I've been involved with that didn't go to the CR price or lower soon after resuming trade. I mean, why wouldn't it? Effectively they just said to the world "3.6 cents is what we are worth!"
So it becomes a self-fulfilling prophecy. Short term holders and day traders who got unfortunately caught out - like poor FXm - will sell for what they can get. (Deep sympathies FX, by the way. You seem like a really good guy/gal/other. May your next trade bring better fortune!!!). Then the SP drops to to the CR price, as happened today, and tomorrow we will see if it goes lower still.
That's why I was bit peeved at the CR timing and discount.
The SP of 6 cents was overblown. Totally agree with Coppa on that. (In my admitted ignorance) 5 - 5.3 cents seemed reasonable to me, and I do believe it would have settled around that level without the CR. Then a CR could have been announced at a lower discount. 4 cents would have been fair (in my opinion) - that's around the point that Imugene spiked to a year ago.
I'm certain they would have had the same solid buy in at 4 cents as they did at 3.6 cents, and 4 cents would have become "the new normal" - with a good chance it would hold at that point. Imugene would have raised even more money, too.
Basically, I think they panicked a bit and sold themselves cheap.
As in life - people tend to value you the way you value yourself. And they valued themselves at 3.6 cents a share. "For a good time call....."
Never mind.
In fairness, I appreciate that the CEO and Board need to be more conservative and less risk taking than me - (a sometime rock-climber who has a relaxed philosophy about life and loss). Their job is
not to maximise the short term SP/investor value. In this matter their job is to steer Imugene through intensive research and clinical trials with as low a risk as possible along the way. That means raising the requisite cash in advance - before it becomes a crisis - and ensuring they get what they need when they need it.
So job done. Short term investors may be collateral damage along the way, but that's not their problem.
Yes - I can this calm about it because I'm a "long termer" who bought in at an average of 1.2 cents and I have a (personal opinion only) view that Imugene is likely to achieve far far better than the recent high point of 6 cents. I won't put a prediction on it, but 10 cents would
severely disappoint me.
So for me this is merely a detour on the highway of life. I truly sympathise with those who just bought high and sold low. For those who bought high and are still holding, and hurting - you do have the option of adjusting your time frame and chilling out. Two years from now - maybe only a year from now - you may find yourself on the winning side and laughing all the way to your next holiday/home reno/heart attack.
In the end, you can't take it with you - profits or losses.
Enjoy your
NOW. That's all we ever really have...
Cheers
Dave
(20min delay)
