New Millennium the CON of the New millennium

rachubb - 24 Dec'05 - 00:45 - 3896 of 3898
Happy Christmas everyone, I'm only £46,188 down on this share. It could be worse I could be dead. I am playing this one like Warren B. Putting it away and never selling. The management are a complete shower of twats. Up to now they have never done what they said they would do, never mind the timescales which have become a complete joke.

I'm sorry to hear that you've lost so much Tony. In fact there may be worse to come. Although I didn't say it when they announced the recent placing, there is the possibility that the placee will attempt to buy all the PI shares at 0.5p.

The problem is that if the 1 billion share issue was to one individual or even a group of individuals, it will incurr an automatic Rule 9 takeover. Since they already have 81% of the company, they are most of the way to getting the 90% they need, to force the rest of the shareholders to buy at the placing price. The fact is that the directors have between them hold 42 million shares and all they need is 112 million to force the issue.

Noticed any heavy buying recently?

They gave shares in lieu of cash to certain companies and these companies may have been dumping their shares into the market to claim back the cash they are due. If the people friendly to the placee pick up these shares - even at market prices, then they can sell them to the placee (at the reduced price), to force the other private investors to sell at the bid price = 0.5p. Then the entire placee party would own the entire for a fraction of the price that the market may have paid. You may ask why the others would sell at a loss to help the placee take the company, well......

If the company has managed to obtain a new license or the joint venture or re-establish the alluvial license, then the shares could rapidly increase in value. However, if this news was held back until all the shares were in the possession of the takeover party, then they would be the primary beneficiary of this sudden rise in price. Then those that sold at a loss would get their shares back and profit with the placee.

It's only a theory, but then what if it is true. After all, most people scoffed at a 4p price.........