Well, today price was expected to happen. We discussed as much on the day the CR was announced. Some may remember this being discussed as an opportunity and that we don't need to be dilluted if we are willing to buy. Well, today is that chance not only to buy but also to do so cheaper than the SIs who recieved the placements.
This weakness almost always happens during the open period. Not expecting it to go down the 25c that nord predicted, but anything is possible I guess.
Not being one to look a gift horse int he mouth I have taken the opportunity today to buy at those prices. Will most likely continue to buy if there is any more weakness also. I was previously happy to buy in the low 30s so this CR is just an opportunity to buy a little cheaper.
SIs wouldn't have purchased / oversubscribed while be willing to dump at such levels. Even if they have short term ambitions they won't be looking to take a quick loss so stock won't hit the market for a little while. There is no overhang from them until they achieve their targets and they will have known that was unlikely in coming weeks.
The offer is only open for another week, so only 5 more trading days to decide what to do either way. Fixed offer at 30c (no guarantees of allocation qty), or 29c on market with stock temporarily available in greater quantities than max SPP purchase. I guess SPP is fallback while hoping for lower price on market but there will be a number of us competing for such cheap stock next week I suspect.
Interesting to see how it pans out. Have a nice weekend all.
NEN Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
