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Langbar International
soul_trade - Fri, 21 Oct 05 :
So many traders claiming to know it all and keep spending their precious time on a share price that is suspended, its really mind boggling. Do you really think that your arguments are going to influence anything when suspension is lifted ?
The way i look at it - we will get an announcement in time, if its good and it is confirmed that the money is there to spend, no past comments from the shorters will hold the price down to let them get out with a small loss.
And if the money is not there, no comments or ramps from the longs will not hold it at a reasonable level for them to get out with a small loss.
I certainly had some doubts before the suspension myself and managed to sell half my stake due to SP falling even after Elliot's sold out completely and 8.3 rule annoucements of multiple institutions buying in, which raised some concerns for me personally.
However the point that kept me from selling all my shares was that Merril Lynch and Gartmore bought in at the same prices that we were able to buy.
So if those big institutions decide to wager their millions on this share at these prices, i guess i dont mind having a little gamble here either.
And why would i care what a well-educated shorter or a "person claiming to have insider info" has to say ?
Those big institutions will have dozens of those well-educated folks working for them, doing research and having prime access to company information and if they bet couple of millions on this company coming good what difference does 1 shorter with decent linguistical abilities make? Certainly not enough to even debate and certainly not enough to lose sleep over.
If this IS a lame duck, then Dr. Ryback and Stuart Pearson would know that the institutions would not let them walk away with a big smile and a pocketful of money that easily.
Would they be dumb enough to get themselves in so much trouble knowing that there are big institutions on-board ? I very much doubt it.
My view on this is very simple: Institutions got onboard thinking that they were getting a bargain, however after they bought the price kept dropping due to the market conditions they couldnt control.
So considering the dodgy past and current uncertainty of the company it gives them a very good reason to suspend the shares for a very very long time (enough to let SP kill 3 ducks with 1 shot 1.announce that the company assets are all intact 2. Complete the Raf deal 3. Announce the property purchase) This would be the perfect game for both the Company and the Institutions.
Also dont forget that Stuart made an offer to RAF when price per share was 78p, so its in his interests not to let LGB shareprice drift any further, so he would take the proposition to suspend LGB with a big smile.
Anyway folks, dont lose sleep over anyone saying anything, time will reveal everything.
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