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bad news

  1. Fridays announcement is a shocker. A placement of 175 million shares at a price to be determined at the directors discretion anytime up to 20th May. In other words a 175m share overhang for potentially the next four months!!! Whats that old market lore about the market hating uncertainty?
    Sounds wild to me but the price of the placement is whatever the directors choose providing its 80% of the previous 5 day average market price. OK you don't have to be Einstein to work out that as soon as the market decides to rally anytime over the next 4 months the directors will proceed with the placement or part of it and cap the rally in the process.
    I reckon this is as bad as it gets. I bailed this morning at 4.7.

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