share purchase plan, page-6

It is interesting to read the recent posts since the SPP was announced. The feeling amongst many here is that the price will not really go anywhere until the SPP is behind us. Further, many seem to think that people will participate in the SPP with the hope of picking up stock at 1.5c, only to then dump their holding at any price higher than that to make a quick profit.

Investor physchology is an interesting factor, and one that I have a personal interest in as I read a fair bit about it when ever I can. When an investor believes the prospects for their investment are not so great, they will participate in such an issue/raising, as a way of reducing their average holding price, and take advantage of trading their holding for a small profit. (the belief being buy 20% below market, then flog on market for 20% potential instant profit.)

Interestingly, when the investor believes the prospects for the company are good, they use the raising as an opportunity to buy more of a share of that business, with no intention of selling.

Hence, the performance of a securities share price immediately after a raising/SPP is allocated is directly correlated to the markets perception of the long term potential of that business.

I guess Mr Market will tell us what he thinks the long term prospects for Intermoco are once the SPP is closed....if not before.

Kiril.

I hold.

Good luck to those participating the SPP.