Australian (ASX) Stock Market Forum

BMN - Bannerman Energy

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peteai said:
Issuing 280m shares seems very unfair at the current SP especially to those like Go Nuke - A better way IMHO is to offer options in proportion to shareholding - thereby rewarding those who have lost having shares now if they buy into the options & the dilution does not occur until the SP reaches a certain value - by which time sentiment in the company is much higher & can handle the dilution Any Opinions on this way of raising capital ?
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So, do investors purchase the options? At what price? And how much do they raise from this?

As an incentive options are sometimes issues free attached to shares and the company will make some money IF they are excised but it's not generally a way to raise capital for building a mine.

They will issue shares and most will go to institutions, maybe a rights issue to current holders and some to the public perhaps. You will not escape the company being diluted significantly to raise the money for mine development. This is still some time off though, the sp may have recovered by then and they can sell higher. Or, not.
 
If I may add to what Kennas said, on options and making money by both Company and Investor depending on market is a classic scenario in today's market.

though not related to BMN thread but under context please refer to INES. It had a staple attached to each share issued. Claimed to be a free option exercisable at $1 which was the issue price back one year or so. The current market price for $1 share INES was 64 cents ! Who is going to buy it at $1? Both the company and investors were looser here.

Regards
 
I agree that this is not silver bullet. My point with the options is that the likely scenarios is that the SP (already low) gets further diluted. I.E current investors get dudded:( EG often retail investors are excluded :p:from a raising to "sophisticated investors:D" who are offered a discount to current SP:eek:

If a mine were operating BMN would be worth something like PDN i.e about $4Bill say - thats $40 a share (existing share base). It may take 4 years to get there but at that point a holder may be very happy with a $3 exercise price. Partly financing the mine thru options may make getting finance from the banks easier - as a solution to not trashing existing shares & getting to a working mine shareholders may be willing to pay for options exercisable at say $3 or $4 up to 2012/13 , knowing that they don't have to stump up with the 4 bucks until the SP is well above that They may have to pay 50c a option (but these options could be worth > $10 if a mine is built).

Like I said it is not a silver bullet for the mess we're in - but maybe with some tweaking it might be workable ??:)

PETEAI
 
Boy, are we in a bear market or what!

Even the so called expert analysts are having a hard time! ... eg take Warwick Grigor of Far East Capital.

He took CTS (Contact Uranium) to his heart last year, even taking up a 1m share placement at 50c/share for an investment of $500k ... and look at it now ... CTS is hovering at 7c/share.

He also became a fan of BMN ... and look at it now ... hovering at 77c/share (from a high of $4 lst year)!

So what chance have us mere mortals!

Mind you, BMN's current predicament does not help it one little bit; what with board changes, a director getting embroiled in the Opes fiasco, the MD departing abruptly with no "real" explanation, and a court case literally becoming a noose around its head.

Sure, it is a bear market, the uranium price has fallen, but ineffective management as in the case of both CTS and BMN is creating a recipe for disaster in this current market.

Mind you, if (and I repeat IF) BMN actually do get the right person in the top position, then imo, its fortunes could change dramatically for the better ...
 
bliimp said:
Boy, are we in a bear market or what!

Even the so called expert analysts are having a hard time! ... eg take Warwick Grigor of Far East Capital.

He took CTS (Contact Uranium) to his heart last year, even taking up a 1m share placement at 50c/share for an investment of $500k ... and look at it now ... CTS is hovering at 7c/share.

He also became a fan of BMN ... and look at it now ... hovering at 77c/share (from a high of $4 lst year)!

So what chance have us mere mortals!

Mind you, BMN's current predicament does not help it one little bit; what with board changes, a director getting embroiled in the Opes fiasco, the MD departing abruptly with no "real" explanation, and a court case literally becoming a noose around its head.

Sure, it is a bear market, the uranium price has fallen, but ineffective management as in the case of both CTS and BMN is creating a recipe for disaster in this current market.

Mind you, if (and I repeat IF) BMN actually do get the right person in the top position, then imo, its fortunes could change dramatically for the better ...
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I recommend at this point ignoring Warick's recommendations in the short term.

Of course, he's got more letters after his name than me.....

Yes, he must be hurting, if he actually invested in these companies...

:cautious:
 
from fat profits today..for what its worth....
they call the savanna bussiness a spurious cliam, and lay blame also on opess saga
not much new really.
called it a hold, pdn a buy conversely.

their theory is fannie and fred will fall, gov will bail them out, print loads of cash to repay insto's, all post election
then a very sharp rally, like the 70's(ie oil times again). all in this year.
calling next two months a buying opp.
sounds good to me...admitedly they did predict the start of this yr would be very bad.
 
Shag, interesting they didn't think it was worth buying again, since their first buy reco was much higher. Over $2 wasn't it?

First decent day yesty in the long slide from $2.50, although not really convincing volume.

Watch for a higher low and high for possible new trend, other than down.

Looks initially positive though.

I'm still not confident in a buy and hold strategy on this after and still with their management troubles and legal overhang.

Short term, I might be looking at a trade, but since I'm on the road, not confident to be able to manage it.

In the bigger economic picture, just all crap news coming in from all over the world, so care needs to be taken in anything imo.
 

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yeah i know, i laugh at fat profits some times when i see their story on a company, see how far its come back since their buy, and not rated a buy at that price.
does show they are fully not confident, but admittedly they do put some emphasis on technical trading.
i got some more at 72, so i do hope its on its way back.
i guess i'll eventually learn to buy on the way back up, rather than the way down plus trying to catch the knife.
thanks for the tips.
mak had a good day which supprised me.
 
i know what bannerman needs to get it going, my mate osama....
hes a good civil man.....well maybe just civil (engineer), and he has a good history of getting things done. hes real good at announcements and updates too.
hell i recon the sp would shoot up if he was made md, thats if anyone can find him in the afgani mountains.
PS he must know a lot about rocks, living in them and all too.
 
Have been an avid reader in this thread for quite awhile now and have found the TKA ( The Kennas Analysis) to be quite impressive on BMN.

And once again found myself agreeing with this current environment, which is technically range bound, and not an effective buy and hold strategy as it once was.

Many good prosperous companies with exceptional fundamentals are struggling with their share price within this environment. Whether or not this changes in the future is something we’ll have to wait and see and whether the US dollar can reverse and bring the commodities back in play. Time will tell.


captjohn said:
I agree with you broadside....and I'll put my money where my mouth is!!

Kennas,

I'll lodge $10,000 in trust for 12 months that bmn will be $5 by then.(13 th. august 2008)

You match it & I'll give you 2 to 1.

If we go into a world recession ....you'll win $20,000.

However, IMO bmn will prove up 150mill.llbs of u308 by xmas & sp will adjust accordingly.
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:eek: Curious to know whether you got on or not!:eek:

SGB
 
SGB said:
:eek: Curious to know whether you got on or not!:eek:

SGB
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I don't think I formally took up the bet, but I have reminded him of his prediction on HC.

He shrugged it off as 'market factors'.

Some merit in that, but how many % off was he? :eek:
 
kennas said:
Some merit in that, but how many % off was he? :eek:
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mmm.. fair point there has been a wee bit of selling of late.

BMN was up today and what looks to be a rounding bottom happening. Just had a look at the chart and gez it was oversold in the RSI last month.

All the best.

SGB
 
Looks like the turnaround may have started. Very strong buy side today pushing the price up despite 1.4m shares changing hands.

Watch for a big run if we get some nice announcements.
 
bollingerbob said:
Looks like the turnaround may have started. Very strong buy side today pushing the price up despite 1.4m shares changing hands.

Watch for a big run if we get some nice announcements.
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Just starting to make a higher high, a roundish bottom formed, but still too early to tell. May have started, agree.
 
What BS!!:banghead::mad:

I dont care what the market conditions are anymore BMN sp has collapsed imo.

No updates on the Savanna!
How many others are losing a fortune with BMN when they thought $1 was a bottom, then 85c, then 75c.

Something HAS to be wrong.
Surely a company with the JORC resources that Bannerman has is worth more than 48.5c!!!
There are going to be ALOT of unhappy shareholdres at the AGM.
I wont be one of them, but already cast my vote for a big fat NO to pay rises and options!
Why should they get rewarded when I'm losing thousands!
 
Crikey!!! 25% down to 50c, disaster for longer term holders.

Is it time to take a capital loss and buy back in? Or, just sell before it goes into receivership once the Savanna claim is upheld?

Could just be overall market conditions too with every man and their dog bailing into cash?

That guy on HC who put ALL his super into this above $3.00 must be sleeping well. Good on the BMN band of brothers for supporting him in that decision.

:confused:
 
hi kennas
interesting all right, good volume yesterday too
i suspect its someone dumping their super funds...ha ha
fat profits r talking of some hammer candle, and a strong sign of turnaround...
at 50c, whats to loose i guess...
the good new manament r keeping us well informed as usual...groan
 
BOOOOOOOOO:bad:

http://imagesignal.comsec.com.au/asxdata/20080917/pdf/00881014.pdf

13+ Mil abstain from the non exec directors pay rise....wtf???

That figure just doesn't look right!
Why would everybody bother to vote on the other issues but abstain from that one???? Someone help please becasue I just can't understand that!

That stink imo.
I'm losing money and yet shareholders vote for a pay increase!

There used to be transparency with this co, but now I feel left in the dark.
BMN smashed more than any other U players.

Thank goodness I dont have access to my super Kennas, i might have been as foolish as that guy you mentioned.
OR that I dont use margin lending.
 
Go Nuke said:
BOOOOOOOOO:bad:

http://imagesignal.comsec.com.au/asxdata/20080917/pdf/00881014.pdf

13+ Mil abstain from the non exec directors pay rise....wtf???

That figure just doesn't look right!
Why would everybody bother to vote on the other issues but abstain from that one???? Someone help please becasue I just can't understand that!

That stink imo.
I'm losing money and yet shareholders vote for a pay increase!

There used to be transparency with this co, but now I feel left in the dark.
BMN smashed more than any other U players.

Thank goodness I dont have access to my super Kennas, i might have been as foolish as that guy you mentioned.
OR that I dont use margin lending.
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I'm not on top of the current pay decisions, or have even looked at the link above, but directors et al, do normally earn their money.

In regard to votes, remember, a damn lot of directors and directors friends, and cousins, own XXXXX amount of the stock. We are pawns in this game.

Bloody hard time for long term holders, and investors in anything!

Nasty times to be an initial investor in the markets....

:(

Good luck all.
 
Seriously cannot believe this stock has fallen from 4 bucks to 50 cents! What a shambles!

Fat Prophets say that the company is making great strides and to hold on to the stock.
 
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