NTC 0.00% $1.10 netcomm wireless limited

Let's assume "NO" wins..., page-25

  1. 3,313 Posts.
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    ‘In general’ prior to a TO, the companies share price is manipulated down from its current value to make the TO price look attractive. It is extremely difficult to contain negotiations and numbers to the select lawyers and financiers. Leaks happen. NTC indicated they were up for sale earlier in the year. Why would a buyer pay market rates (plus a premium) when they can churn the price down through ‘friendly brokers’ and then submit a lower bid?

    I think your model of buyers and sellers is too simple and it assumes the buyers and sellers are different entities. The ones who ‘lost’ when selling at 76c would have been predominantly retail with relatively small volumes who bought at higher prices. The ‘winners’ would have been the brokers who utilise HFT (high frequency trades) to churn through millions of shares with small percentage gains.

    The ‘winners’ (should the sale go through at $1.10) will be CASA, Management, the brokers who have HFT on their side and a small percentage of retail who only recently bought below $1.10.

    The ‘losers’ will be long term holders who saw (and still see) the potential of 5G and Fixed Wireless but were misled by Management’s claims of return on R&D investment and a step change in revenue.
    Last edited by futurenow: 15/05/19
 
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