Gastem Inc GTMIF

OSLO and other points

[natureboy16]

This is just my opinion:

I think that the dealers knew that GMR trying to raise $10m in order to satisfy one of the OSLO listing rqmt's was not going to be easy (at all).  The market is sloppy; natty even more sloppy.  Europe is still skittish over sovereign risks - showing up in terms of market liquidity - ie. look at QEC share price.

When dealers see a tough deal, in a sloppy market, and the, at that time, recent share price was falling - they smell blood.

Don't forget, they are not there to serve you and I or GMR.  They are there to make money - and they will.  When they smell blood, the profit margins are (much) higher.

It is my opinion, they sold this very hard.  They knew GMR needed the money.  If not for OSLO, certainly for NY, and also perhaps Que.  They were given a schedule of what would be raised at different prices (from GMR).  They knew exactly where they could sell down to and make a very nice profit when you factor in the commission and the warrant value, all in the context of the diluted value per share.  The over arching feature of this deal is that the dealers know there is a wave of news coming into the market over the next 7 or 8 months from the Utica.  They know that only half of that has to be positive for the share prices to vault.  This basically guarantees a wildly large profit for them. 

Very few sales were thrown into the bid at what appeared to be distress (scared) .  The orders that came into the bid were mostly larger chunks of 5k to 20k shares - distribution from the dealers.

I think the biggest fault lies with mgmt for their utterly poor timing, and even more, their very  poor understanding of the securities market.

JMHO,DYODD

nb

Discl:  long and on order for this PP