I thought it time for a new thread again!I believe the...

I thought it time for a new thread again!

I believe the disproportionate response of the SP to recent encouraging announcements is due to a factor seemingly missed by most Posters!!

That is the insidious Rolling Convertible Bond the company is using from time to time to "raise funds"!!

Yes a big statement but I will back it up bigtime!!

But let me go back a while!! For some time now I have posted suspicion on lack of response of SP to positive Announcements.. More specifically I have felt there has been manipulation of the trading market!

See my previous posts for details but briefly there has been far more people wanting to buy (in the first two lines of depth..the rest are rubbish!) than sellers but there has been a constant and persistent off screen selling going on!!
I admit I was not sure why or who would want to sell whilst hole was being drilled with the likelihood of a good result!!

Well after a long and detailed research into the matter I have came up with the culprit!! Rolling Convertible Bonds!!


Yes!! I have no doubt that these bonds are a License to print money!!Why?

Very Simple.. The Bond issuer "very generously" gives us money to "help out"! He then gets shares issued at a very generous discount to the prevailing market price and IMMEDIATELY puts them on the market! He does not care one cent about long term prospects of the company "as he is a Day Trader " with privedleged entry price!!

The bond Issuer is not an investor!! He is there to quickly take a margin on his entry price and vacate the market till the next opportunity comes up! He is very skillfull with Bots and Market Manipulation!!
Now I had hoped to publish a chart to prove my concerns but am away from my own resources in Noosa "on holiday" but I challenge anyone who doubts me to do the research I have done on this matter. That is check out the time that Announcements of when these bonds were issued over past 6 months against SP on a chart!!
Every single time the SP either drops or goes sideways!!

Despite good news, despite more buyers lining up at the coal face, OFF SCREEN selling comes in and caps the price!! Please check it out yourself!!

WHAT I AM SAYING IS THE LACK OF MOVEMENT IN THE SP HAS NOTHING TO DO WITH THE MARKET FACTORING IN DRILLING RESULTS BUT ALL TO DO WITH MANIPULATION!!

Take last two Bond Issues in December!! We all knew drilling was about to start..the last Dec 22 was well into drilling..From the Bond Issuers point of view a safe time to be sure SP wont fall.. It should have gone up but alas it has gone sideways.. A good result for the seller of the convertible shares who was issued shares at a discount but no help to long term holders!!

These guys are not interested in holding..just getting a premium as soon as possible.. My calculations suggest they make a minimum of 8% each time they issue a bond and sometimes up to 15% .. This 8-15% is in a few weeks!! Not per annum.. Get It!!
I feel we need to lobby CTP to forget Rolling Convertible Bonds and go back to traditional capital raising when necessary!! That in itself raises the question why are we continuing to use this SP destroying facility when for the moment there is (or should be) plenty in the KITTY!
I will try to publish a chart to support my statement when I return early next week!

Despite the above, eventually the real potential of CTP will come through and prevail but mean time we may loose disappointed shareholders for the wrong reasons thus sending the SP further down! Does this bother the Bond supplier? Of course not as he will always get issued new shares at a discount no matter what the market price is!

I my self will be holding but with very tight stop losses.. And for the record I bought most of my holding at less than 8c! So this is certainly not a case of sour grapes nor downramping!!!!