Originally Posted by
Snoopy
Don't know the terms of the cash issue yet. But given the discount offered on the DRP of 10%, it would have to be greater than that. With the share price nudging $1.50, I am predicting the 1:3 offer will be pitched at $1.20.
For this reason I have been a seller of SCT of late. Let some of my shares go in a rising market at $1.40. That topped up the capital I needed to fully fund the cash issue from my perspective. Then stuck some more in the market at $1.49 and I think the last of those were gobbled up today. Some would regard this as impetuous, as with the benefit of hindsight it looks like I could have sold all of my shares at $1.49. Perhaps but it was important to me to bank that cash issue money and there was certainly no guarantee a week ago that I could have sold any shares at $1.49. The sales at $1.49 were for me a bonus, and enabled me to reduce my average entry price down to $1.16.
In a thinly traded share like SCT, trading rules won't help you much. Those students of market depth would have been caught off guard when I suddenly entered the market and took out all of the buyers at $1.40 with absolutely no warning. I then put my 'maybe' sale into the market at $1.49. Sold a few that day and had to wait nearly a week before the reainder of my meagre offering of shares was snapped up. I would say over half of the shares traded in the seven days before today were mine. Would it have made any difference to the market if I hadn't been there? Obviously yes. The market for SCT shares would have been very different if I hadn't been largely controlling it over the last week. This is why with low liquidity you cannot rely on charts to dictate support and resistance points as the whole thing can be manipulated very easily by as few as one active market player.
SNOOPY