Thanks for the reality check and ur hard work doing all that...

First 30 Last

Share
Profile

Follow
Rajenp5

2,320 Posts.

17

09/12/16

16:38

Post #: 21235196
Share

Originally posted by Waldo777 ↑

So I have finally had a chance to do some extensive research on the escrow shares about to be released on Monday.

Despite at least one poster here on HC suggesting that none of the escrow shares are going to be dumped because they are vendor shares or held by those associated with LPE I am not of the view that this is entirely correct.

Based on my research, a significant number of the shares coming online Monday are from pre-RTO loans that were converted into shares and options, which upon exercise earlier this year went into escrow.

Go back through all the Appendix 3B statements this year and the prospectus from last year for all the details.

The only question is whether or not the holders of the escrow shares will want to dump at below 2 cents.

If they want/need cash I suspect they may sell down below 2 cents and so I do see potential in the next few weeks for us to test 1.5 cents which was support from last year.

There's no guarantee it will get down there obviously but that's where my bids are based on my researched opinion of where the share price may go.

It's also interesting to note how the buy depth seems to be reflecting this view; there's not so much support at 2 cents and lots more bidders around me at 1.5 cents.

Anyway, obviously DYOR and there's no guarantee where the share price will go in the short-term, but it's definitely best to plan for all possibilities.

Expand

Thanks for the reality check and ur hard work doing all that reaserch. Much appreciated

LPE Price at posting: 2.1¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply