PINL:NEPTF - Post by User
Post by
gwrbion Jun 09, 2010 6:30am
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Post# 17171763
Management indifference
Management indifference
Can't help but smell a continued indifference by management to the floundering share price. Maybe they will close on a new financing, maybe they won't. Their advisors thought the timing was right, but apparently were wrong. So when an investment house advises you should drop your pants and announce a $15M stock issuance, and when the SP falls the next day by 20% (due to the debt crisis, but also due to the "WTF did that come from?"), does the investment house (Paradigm/Dundee) owe a "break up fee" if the deal falls through? Do they put their money where their mouth is? Or is it just a bunch of "OOPS" all around? So much for credibility.
This shareholder rights plan does not preclude management from selling, it just buys time. Retail investors shouldn't care. Even the rumour or announcement of a take-over deal will drive the SP much higher. So feel free to exit when that happens.
What is very frustrating is the fact that since the $15M financing announcement, about 25,000 measly shares have traded per day, driving the SP lower. Represents 0.05% of the share float. That does not determine true market value.
The issue isn't the penny antes that are selling at these levels, it is where are the buyers? Why is there no demand? The message just ain't getting out.