HDR hardman resources limited

HDR palcement - insider trading big time !

  1. 15,860 Posts.
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    The placement is confirmed exactly as Butcherano foretold! This has to be seen as insider trading - those in the know selling it down from 90 pre-Banda results, taking profits knowing it would fall to around 70 cents, while others watched bewildered at the market's inexplicable apparent response to a good drilling outcome.

    All those posters last week (myself included) who pointed out how poorly this has been handled (for shareholders not in the know) are now vindicated. I don't know about you but I continue to be pi**ed off !!
    Why now? Why 70 cents - surely it could have been higher and raised much more cash for HDR. Why just the mates (Intersuisse and Macquarie and the UK)???

    OK, I'll calm down and try to look at it in terms of what it means for HDR and the shareprice.

    Will it provide a floor for HDR? Previous examples suggest not necessarily. If Ching 4 or Thon dissappoint the share price may retreat below 70.

    Where will HDR open? Because the placement seems to have already been factored in I would expect that it won't open lower (i.e. around 70-73 cents).

    Will it move up strongly? What happened with the placement to WPL last year was that the share price moved up towards the $1.10 but didn't quite make it, and then it fell off disasterously after Courbine dissappointed. Perhaps this is why HDR has set the price at below market (well below the 86 cents pre-Banda and pre inside sell down). This way it can only rise??? and the response to any drilling disappointments will be smaller. HDR have said that they want a more stable share price and a placement at a low price to WPL and institutions should achieve that aim.

    All in all its quite positive for HDR going forward but the process has left a bad taste in shareholders mouthes.

    Regards

    H
 
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