I would not get too excited about MAK at 60 cents. I was watching the booktrader on today's trades - shares drop to 46 cents and suddenly shoot up to 62+ cents over a short period. These did not seem to be stacked buys waiting their turn but looked like sudden purchases on large blocks of shares that took the price to the next highest level - up they cascaded. Why would anybody jump in and purchase shares at crazy prices to get the SPP - in theory it would seem you only need one share for the entitlement and you have until the 6th June (I think) to buy the necessary shares to validate your entitilement.
Think about it -
a) rapidly dropping rock phospate prices (now below MAK's original estimated cost of production - that has now been dropped to less that AUD 100 - MAK presentation 26th May 2009),
b) an unusual SPP with an offer to purchase up to $15K of shares to anyone who buys a share before June 6th 2009 - why would the average retail shareholder pay 60 cents today?
c) same day deal sweetener with announcement of tin assays from a few holes in Tassie.
d) same day announcement of Port agreement in Darwin.
e) day after announcing bonus shares to Bonaparte holders if get >90% acceptance.
I thought MAK was looking a good bet for substantial gains however together with Namibia business they are deep into rock phosphate that for all we know may go back to USD 50 (especially as earlier high pricing has stimulated lot's of activity in this commodity). With prices dropping I am much more cautious and todays price behaviour has multiplied my suspicions. Hope I am wrong as I had this figured as a good business.
Sold most of my holding past 2 days with view to getting back in at 43 if all else seems positive at the time