TLG - Media, page-14252

Since the string of red days started on November 22, there have roughly been 17.5m shares traded. How many of those were from Kinetic? They could also have started offloading before this date. Unfortunately we don't have an exact date as an announcement for change in substantial holding was not required.

Short term, the share price will likely be under continued pressure for a while yet as they liquidate.

If this is confirmed, the positives are that the share price will have a disconnection to the fundamentals because the fund has been forced out of their position. The selling is not due to the fund adjusting their holdings because of underlying fundamental factors. They have no option. It also rules out@Archer9's theory that investors have just become "impatient". The selling is not due to a lack of news or negative insider information leaking from the courts.

This information has cleared the picture as to why there has been a sell-off and presents an opportunity.

In a more critical view and with hindsight, I will say that the timing for a SPP was not great. Pre-SPP in October, we saw the dip below $1.00 was met with strong buying. Now after the SPP, retail are running on fumes and there is a lack of buying pressure. Add to this the dilution of the 19m shares and on top of that Kinetic dumping their 17m. Fundamentals or not, that will cause some short term problems.

I'd be interested to know when management were informed of Kinetic's situation, because retail would likely have soaked up Kinetic's liquidation and not caused as much damage to the share price (If going by October's dip). Obviously another possibility was risk management. Raise funds in case of a negative outcome from the court and before the share price goes down due to the liquidation.