ORP 0.00% 8.0¢ oropa limited

what to make of the "placement" announcement?...

  1. 15,276 Posts.
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    We already knew ORP were in the process of organising a placement with off-shore (London and Zurich) based investors...

    After all, they said so in the last quarterly.

    So why did they feel the need to announce it once again?

    There is no aditional information in the most recent report, other than the fact some local "sophisticated" types will also take part...and the fact that they will also raise some $6m further down the track...and no indications of a possible palcement price.

    Hardly worth the effort in my opinion...so why bother making such an announcement at this particular point in time?

    Well...in my opinion...I suspect it may have been issued at the request of the placement sponsors, in an attempt to cap the share price, which was about to break out into a major vertical run.

    It is clear some serious players have been accumulating large positions recently...possibly those involved in the placement...it is also abundantly clear they have been having a little difficulty getting shares at their preferred price.

    Perhaps they have been a little surprised by the lack of net sellers?

    The announcement may have achieved it's goal of cooling things off a bit, as one can see from the retrace since it's release...but unfortunately for the accumulators, the retrace has come with greatly reducing volumes, which is not particularly helping their cause. Of today's 4.3m+ shares traded, it appears some 3.5m went to the accumulators, 3m of which was a single order on the open.

    Not many pushing the price up...but even less it would appear, selling it down.

    Technically speaking, the selling has all but dried up suggesting we are probably looking at the bottom of this retrace...the reducing volumes over what are effectively very small falls are textbook, suggesting higher prices near term.

    One of the standouts in my speculative book.


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