Risk vs Reward

Hi all,

Have been looking into this company for awhile now. This is quite similar to a few other stocks I own. Its not in a sexy industry, but its in and industry that has the potential to make money. When they start announcing substantial figures, this company goes from being dull and undervalued and ++++$$$$

Now, to the nitty gritty. One concern I have come across is this, and I wonder if any of you have put any thought into it: In the previous capital raising the raise was under-subscribed and a lot was taken up by the sub-underwriter. In the statement it says that the sub-underwriter now owns +30% of the company (and one of the directors owns around 35% as well). Now, we can assume that the director won't be selling anytime soon.

But what about the sub-underwriters? They are looking at a major paper loss given they had to pick up the slack at the CR price which is higher than todays price. Now I realise they are not going to be rash and dump them on to market, I am concerned as an investor looking to make money on the appreciation of the SP, this is surely a reasonably large cap if we start to see some movement. They would surely sell into any momentum.

I will be building a position over the coming weeks/months but will limit the extent of my position because of this issue. For the time being, it means that we have a very tight register, but in the future it could be an issue.

Any thoughts from other HC members? I know Pinto sometimes shows his/her head on this thread. Also, management are quiet about the rollout they are achieving at the moment. Could be a good thing for the people in the know now, and good for me to build a position, but ultimately we would probably like some more PR when we start pulling larger numbers.

Have a good evening all, and I await your responses!