From my understanding, none of the trades yesterday were the actual shares from the SPP. None of those 142M shares will have been issued till today so those shares cannot be blamed for yesterdays fall. More likely a combination of
1) some like me selling already owned shares in order to buy back due to the highly probable drop after that announcement
2) holders skeptical of the motives of the higher issue in relation to the upcoming results. A common thought may be there is nothing there otherwise why not issue the extra 100+M shares at a higher price down the track. Also concern that it seems that management do not have faith in the likelihood of additional funds coming from option conversion.
3) Sheep mentality
4) Stop losses being hit.
5) Frustration of shorter term holders not wanting to wait any longer especially considering the amount of posts on here that the announcement should already be out
Overly positive (or otherwise known as ramping posts) can actually have the opposite effect. Expectations are built so high that anything less creates a bit of panic.
Having said all this, the majority of the 142M SPP shares will hit accounts today (mine still arent there) and so the downtrend is likely to continue if most decide to sell.
Non emotive realism is desparately needed on here despite what we all hope will be. Both sides of the coin needs to be considered very carefully.
RMX Price at posting:
2.2¢ Sentiment: None Disclosure: Held
