Peregrine Diamonds Ltd. PGDIF

Speculation on Pricing and Timing of Rights Offering

[justanormalguy]

Many know, I'm a Long Long. Always have been.

We've seen a number  of speculatory posts on SH and SI related to the pricing and timing of the rights offering. Many on both sides could be proven valid, we just don't know yet. We can only guess and hope.

I summarize some of the possible positive reasons for the timing and pricing, some of which were alluded to and inferred by others much smarter than me. I'll leave the negative reasons for others.

1. Maybe, PGD has some aggressive suitors (strategic buyers, institutional, private equity) and the rights offering is acting as a poison pill to benefit the loyal and long term holders on any potential transaction. The Freidlands want to make money, so do we.

2. Maybe, it's good “sentiment” from the BOD to shareholders to first allow maintaining % ownership (historically, they've always financed from the pockets of shareholders).

3. Maybe, the insiders know much more than we do. But are limited to what they can say by regulatory requirements. Perhaps they expect one exceptional piece of news to come out before the exercise date (CH7/CH6, Botswana, spin-out of PGE and funds to get it moving, commitment to next phase financing, offers for DO27, deal with global jeweler, royalty buy back from BHP).

4. Maybe, it's as simple as confidence, arrogance and payback by the BOD and Executives. Does this offering have something to do with “squeezing” and “punishing” PP sellers, tax-loss sellers, stock flippers, the shorts, acquisitive suitors undervaluing PGD's assets......with insiders expecting a share price jump. Remember the impact on stock price from tax-loss selling last year.

Maybe there's more to what JK says relating to PGD's “body language”.

Normal Guy