Post by
westcoast1000 on Jan 14, 2022 1:30pm
manipulation?
There is much confident talk here that Pala is manipulating the share price downward.
Since they and two other big mining companies own half the company, why would they do that?
There are two possible reasons:
-they want to take over the company. As I have noted in the past, BC has pretty good laws requiring agreement of the minority shareholders that would mitigate against a takeover at a historically low price.
-they want to finance once again at a low price. I guess that could be relevant if they expect to need financing to maintain progress in getting the mine going and they have minimal production to create cash flow.
One longer term explanation is to scoop up the shares that will be issued for the pit financing but that would be perhaps a year or more away. I cannot see any gain to them to keep the price low now for a financing one or two years in the future. Moreover, if they were not going to provide the capital for the financing, then it is in their interest to get the share price up, not down.
Companies do not depress their share price without a reason. If that is what is happening, it has to be for one or more of the reasons listed above, or some other more hidden reason.
Countering the above arguments, and leading to the conclusion manipulation is not going on for long are the big purchases made by Solway and the other company, and the insider buys, which do not benefit from any of the reasons above to keep the price low.
Go figure.
I welcome the views of others on these points.
Comment by
RoyKerr on Jan 14, 2022 2:45pm
depends on what they are doing. big complicated plots, lol no. delay courtesy news update for a couple of weeks to stop warrants from redeeming? sure, why not.
Comment by
slewfoot2 on Jan 14, 2022 2:48pm
Roykerr, seriously? That is why you think there might be manipulation? Lol. The shares are not free dude,
Comment by
slewfoot2 on Jan 14, 2022 2:51pm
Nobody would redeem warrants ( outside of notgnu) for $2.00 a share. So you think pala is keeping the price at $0.70 because of this?