Firstly, there are not that many people who have bought below 18 cents (on a pre consolidation basis) and who would be reducing their exposure by taking profits at this level.
Secondly, BPH has been the capital raising whipping boy for the pep 11 drill. We have had 3 major cap raisings in the last 12 months. The first one was at 11.75 cents ( that is a loss at current prices) to take our initial stake in Advent at 50 cents. Then only a few months ago we had another cap raising at 8 cents to increase our shareholding in Advent at 50 cents a share again. Now we have had another cap raising to increase our shareholding in Advent through a sham auction where we are basically the only bidder at the bottom of the range at $1.25 per share ( surprised we didn't pay top of the range at $1.75).
As there were no other bidders ( besides some asian punter for a few hundred thousand dollars) it is perceived by the market that the true value of Advent as it stands is actually a lot less and thats a possible reason why the peppies have lost a lot of ground since BPH was suspended.
Another question is why did we have to buy more Advent at a possibly inflated price when we already had near 20% ? Even the experts report said we are being diluted. Thats the problem when you have one Director who controls Advent, BPH, MMR and GBA. What are the independent directors doing ?
Another question is why are we always paying GBA underwriting fees for our cap raisings when they don't have any money and have from my understanding never actually underwritten one share. There is always a substantial shortfall and never underwritten.
The whole cap raising effort along the way has been a joke with a complete lack of disclosure along the way.
In saying all of the above, if we strike gas over the break then all is forgiven.
BPH Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
