Laserbond Ltd - LBL

[slimwin]

I'm pretty new to investing (at least not using paper trading) and haven't been involved in a SPP before. Is it usual for the shareprice to tank as bad as LBL has after the announcement or is that more the turbulent markets at the moment?

[percy]

I'm pretty new to investing (at least not using paper trading) and haven't been involved in a SPP before. Is it usual for the shareprice to tank as bad as LBL has after the announcement or is that more the turbulent markets at the moment?

No.When I saw the announcement the SPP price would be 23 cents I thought great.Now with share price under 23cents it is cheaper to buy on market,so who will support the SPP.? Why the big drop.Deal with Alcoa must be positive.? The fact they are expanding a proven proccess must be positive.?Yet the SP tanks.I am pretty old at investing and still can't understand the market.

[slimwin]

Is it likely they'll drop the SPP price lower to make it attractive or find another means of making up the shortfall?

[percy]

Is it likely they'll drop the SPP price lower to make it attractive or find another means of making up the shortfall?

I don't think so,as the placement was done at 23cents,and the organising broker of the placement would not accept the SPP being at a different price.What happens next I don't know.Should the SP go up, we take up the SPP.Should the SP keep dropping we do not add money to a losing position,so hold onto our cash.I don't intend selling my holding.We have time before we have to front up for the SPP as no dates have been given yet.

[slimwin]

Thanks for the insight Percy. I'm in for the long term anyway. This is another wee lesson on the way.

[Lizard]

In my view, the spp was still dilutionary to valuation - although my valuation only fell 1cps to around 31cps.

However, right now, the market is focussed on cashing out. There will be many with good profits in LBL who decide to cash some out.... worst case, if the market turns, they might have to buy their spp shares back a few cents higher... if it doesn't, they might get to buy them back lower on market... or buy something else that gets beaten up in this rout.

Also, their heavy dependence on the mining sector might be spooking some who are fleeing everything mining related in light of China slowdown.

[h2so4]

I think growth companies are at the bottom of the heap in this market.

[percy]

Gee Whiz,I hope Mr.P is not watching,as I sinned this afternoon and brought some LBL at 20.5cents.
As the old saying goes,"do as I say, not as I do."

[soulman]

I think Mr P left the market at the right time and has left leaving us wiht educational wisdom of the market.

What you do now is to read as many thread by Mr P and learn from his/her wisdom.

[percy]

Gee Whiz,I hope Mr.P is not watching,as I sinned this afternoon and brought some LBL at 20.5cents.
As the old saying goes,"do as I say, not as I do."

Gee Whiz,Must say a warm welcome to the buyer at 23cents today.Welcome.Don't feel so bad about the rush of blood to the head I suffered the other day.