Trading & Holdings

An amazing 7 trading days in the life of PSF, time for a little reflection I feel.

At 30th September 2015 there were only 923 shareholding accounts, only 391 of those accounts held more than 100,000 shares. You needed 5M shares to make the top 20 holders & the average holding of the other 371 accounts was 802,000 shares.

Since then 110M shares were issued in a placing, but we don't know who to, or to how many accounts. No-one had to issue a holding's notice so no-one account bought more than 19M shares at that time.

There are only 3 accounts with more than 3% of the company. The directors own @ 55M shares in total or @ 8.4% of the company currently.

The top 20 accounts used to hold 42% of the shares in issue.

ASX Chi-X
8th March 56.7 M 17.8 M
9th March 88.0 M 42.8 M
10th March 44.0 M 32.9 M
11th March 51.2 M 23.6 M
14th March 167.5 M 98.7 M
15th March 230.8 M 132.5 M (1400+ Trades on ASX)
16th March 185.0 M 131.8 M (1325 Trades on ASX)

Totals 823.4 M 480.1M

That is serious volume by anybody's standards. Yes it includes day traders & the pro's at work. Even so the total number of shares in issue have effectively been traded TWICE in 7 sessions.

Today probably saw many of the "weak hands" "panic'ers" & day traders head for the exit, handing there shares over to the pro's etc.

I know, I've highlight the company to many outwith HC, for them to go & research accordingly. Some I know have bought in, taking a long-term view of what's going to happen. So they'll be holding for probably 6 months or more before reassessing the progress the company's made in that time. That's at least 1M shares that's been taken out of the "free float" this week alone.

Other have indicated that they've bought in to, I don't know in what quantities or what there strategy's are, but I'm inclined to think there looking at it with multibag potential. So there likely to be reducing the "free float" even further.

The more new people who are alerted to the story & do there research & decide to get involved, the smaller & smaller the "free float" will become making it harder & harder for the pro's to increase there holdings no matter how hard they try.

It's not as if there's going to be a significant share placing, they've already said 25-50M was the indicated size of it, more likely at the low end of that range & at more than 2 cents given what's happened in the last week.

There action's in the terms of the 2 deal restructures, have both reduced the total number of shares that are going to be in issue, clearly they want to have as few shares in issue as possible.

Yet unlike many American's, there not put off with having 2.479 Billion shares in issue once the deals completed, otherwise the would have done the share consolidation. There happy to go with the Aussie & European route where many investors, target owning a million shares in a company

LOTM