RE:RE:Once the wire is CONFIRMED the stock goes back say Sixty speculator wrote: Something is not right, I can't put my finger on it but I would be very careful. This is not how a company that wants to invest $100 million does business. Just my opinion but I will stay away until the I learn more. Have a great weekend.
KMDC commitment to the deal is not news. However KMDC Ltd is not a public company and nobody knows its cash position and its source of revenue. One million dollars in a $100M deal is peanut but the fact that KMDC has to pay it in 2 instalments proves that cash is not really readily handy in the company. For me the payment of $500K did not warrant a "trading halt" request by POP on 3 points: 1) KMDC commitment to the deal is not news and 2) $500K is so tiny a sum and 3) the financial reports were released very late last night (or 11 am Seoul time) so it would be inconceivable if today NR deviated from the MD&A narrative. But somehow for POP management today's NR was such a big deal that needed a trading halt. A surprise to me.
What is also not news is the fact the KMDC, despites its commitment to the deal, is not the one who hold the purse strings. Neither POP nor KMDC has a sure idea about the final decision from the Korean financing party who has total control over the purse strings.
So, imho, the short term catalyst is not the $500K NRs but the NR of Oct 7.
Furthermore I would not be too concerned about today drop in sp as, imho, it was just the effect of the good old "Buy on rumor, Sell on News" when stock prices move in anticipation of news and fall back when profit taking occurs. A temporary sp position, I say.
Again the first week of Oct will be the week to watch with the possibility of the train leaving the station in a fast & furious way, or perhaps not.
My humble 2-cts and I have been proven to be wrong more times than I can remember.