share price monday, page-34

as a piece of speculation, I would hazard to say that more than a few instos in the US probably queried our management during the US roadshow, asking them what we planned to do on the funds side of life

no doubt the nudge-nudge-wink-wink response alluded to the company's plan to conduct a CR some time around the middle of the year - in the process of setting the wheels turning for the CR, the SEC determination then made it well nigh impossible for US instos and funds to participate

now for the future prosperity of the company, and for generating good will and for ensuring a strong listing on the NASDAQ, I feel pretty certain our management would have loved to have been able to have the US instos and funds participate in the CR, but that just didn't happen, at least not at first glance..

when I look at the price action pre and post the SPP closing, I'm left with the feeling that a good deal of the newly allotted shares were placed with some group, with the express aim of keeping the SP around the 30 cent mark, just for the purpose of enabling PRR to list on the NASDAQ at a very low price, effectively handing US funds and instos the opportunity to get a slice of the action at nearly the same prices that the placement and SPP was made available to us in Oz and NZ

call it capping if you want, but the reason for holding the SP at these levels is more interesting, thus my speculation above - inorder to curry good will and favour with US investors come the expected launch date on the NASDAQ

which of course leads to the further speculation, that upon listing we could expect to see massive volume and uptake, as US instos and funds rush to grab the stock at these ridiculous prices - that little thesis doesn't sound crazy if you return to my earlier post where I try to guage what value the US market will place on uor little stock, come listing date - I still hold to the view that PRR ADRs could very well move towards the US$30 mark very quickly, representing only some 15/16% of the market cap currently enjoyed by our close comparison, Dendreon

TA chartists may very well disagree, but all charts to date have been influenced by one market only, and one group think only, namely the Australian, (with a little help from our NZ neighbours), where no one can reliably point to any technicals or indicators that directly incorporate the influences, momentum and appetite of US investors - once they start piling in, the charting landscape for analysing PRR on a TA basis will, I believe, be radically altered overnight

anyhoos, just some warming thoughts for Monday, as we navel gaze and await interim Phase IIb data and SEC clearance to proceed directly towards NASDAQ


good luck