The market for AXM/AXMR is having a moment of insanity. Perhaps...

The market for AXM/AXMR is having a moment of insanity. Perhaps the participants have been driven mad by their historical losses.

Who in their right mind would buy AXM at $0.045 when you can buy AXMR for $0.003? AXMR = the right to purchase AXM in 3 weeks for $0.04 with 1 for 10 free 6c/3year options thrown in! It should be trading at a premium to the AXM price.

1. The 'free' 6c options are a massively leveraged bet on recovery.
2. The 3 weeks before the rights issue must be subscribed or foregone gives valuable time to watch the $A POG trend.
3. Even if you decide the above is worthless, AXMR are still the cheapest way to get into AXM.

Bizarre.

Either they are going bankrupt or there is a bottom in the shareprice somewhere. I feel for long term holders, but what is done is done. You have to deal with the reality as it stands right now.

Given that the rights issue is underwritten, bankruptcy isn't on the horizon, and you would have to think that any holders who want out will he out by now. With debts paid off and production issues as lessons learned behind them, there is a fair chance that 4c will prove to be the absolute floor, although clearly the market doesn't feel any obligation to behave rationally.