A lot of these runs to create excitement depend upon the skill and aptitude of the company's broker in controlling the run and the market. I have seen it numerous times where certain brokers know exactly how to let the lid off let it run and make money for their clients (both the company and investors) consistently.
After doing some research on our brokers for the recent raisings I am not so confident. Taylor Collison have made the ASIC news recently for unethical conduct on a couple of occasions. Their record with past placements is not great to say the least and they do not often result in any Short Term gain for their client companies SP.
If it is them (I cannot say with absolute certainty but taking a guess) controlling the price atm it is a pretty poor effort. With the impending news and released news from our Gold projects we have only gone backwards even below the most recent 1.3 raising price.
It does not necessarily appear to be accumulation either which is worrying. By now the reigns should have been let off to get better value for the company in their next placement, especially considering another placement is imminent. Instead i think they like the majority of smaller brokers out there they are happy to get their issue fee and run.
This is all IMO and may not reflect the actual situation. But broker support for penny stocks is absolutely vital to their run and well being in order to ensure results are priced in and minimise dilution in the next raising. Atm we are not seeing any support and unless we have an investor come on the market and start buying its going to be a frustratingly slow ride up.
EDM Price at posting:
1.0¢ Sentiment: None Disclosure: Held
