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The Big Boys Want Your Shares - Don't Panic, page-43

  1. 12,896 Posts.
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    BINGO !! ......And to answer Coolgrace's question first - it is because of the VWAP volumes below and around 2.0 cents as well as those which took the SP to 4.0 cents. The head stock is in a ' holding pattern ' until Investor's get a feel for where they will land once they commence trading. At least this is what the numbers and the math is suggesting to me and supported by my previous analysis. The thing about this ' raise ' , ' Issue ' , ' Offering ' .....of Options.....call it what you want - as against ' Free ' attaching options is that those exchange traded Company options apart from being free are more often than not issued well and truly ' out of the money ' when compared to where the current price of the head stock is trading.

    O.K so in this case , it is better to think of them as ' Pre-Paid ' installment shares than say straight up vanilla Options. Yes they have a strike price , and yest they have a generous time value. But they are distinctly different in the sense that they have ' Purposefully ' been structured into the ' Capital ' and ' Capital Management structure much in the same way as an SPP or rights issue for ordinary share. So you really need to give consideration to the 1 for 4 ratio being factored in. On top of all this , you really do need to give a high level of respect and credence to the type of Company this is as compared to it's peers ......whereby these High Growth Companies ' leverage ' of the increasing SP to further underwrite the future capital raising's and growth needs of the business. And the Market knows this and so will usually grant the Company this latitude in supporting the ' ever increasing ' Market Value.

    Just look at what some of the others have been doing with their ' consecutive ' raisings throughout 2019 and 2020. They have no qualms about raising capital at the ' next ' highest level the stock achieves. Now think of how this typically works with small cap spec Mining companies. More often than not they and the market will discount the pricing heavily. And generally I feel that the risks are relatively higher and with a lower probability of success. So you need to consider all this when you weigh up your decision on CRO as against comparison's to other Peers and other investment segments or markets.

    And of course news will come which will inevitably spur on the SP to greater heights. This is a given and one which will start with the commencement of trading of these ' Pre-Paid ' installment shares....which is exactly what Jaxsonn is saying will occur in the first week or so of October. In the meantime we can only just relax and focus on other matters or stocks. Hope this explanation helps.
 
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23 11796558 1.0¢
 

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Price($) Vol. No.
1.1¢ 887730 3
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