STT strata mining corporation limited

stratta > some one saw the light, page-5

  1. 2,922 Posts.
    Hi guys

    I would be very careful with STT, they are basicly the parent company of SBM, and dont have very good track record.

    Here is one example.

    On the 4th of September 2001 SBM announced a buy back of up to 20 million shares, which created a very health spike in share price.

    On the 4th of October 2001 Strata (STT) sold 6 million shares at around the 25c mark, and "stated" that the had no intention to sell any more shares.

    On the 9th (5 days later) of October Strata sold another 2.7 million shares at around 28c, so much for good intentions !!

    SBM's total share "buy back" which ended in November 2001 was 4.6 million, well below their stated "UP TO" 20 million announcment.
    Strata is the major share holder of SBM and they share a very cosy relationship.

    After stating a share buy back on 4-9-01 SBM have made a string of share issues, the biggest being 60 million at 20c on the 27th of May 2002.
    Which defeats the purpose of buying back 4.6m at a higher price ?

    It appears that the "buy back" was more of a fund raising exercise for Strata, rather then genuine concern for the SBM shareholder, IMHO.

    This may sound like good news if your holding STT, but they will not attract serious investors with this type of corporate behaviour, hence the price will continue on it's long term downward slide.


    Tex.



 
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