NST - Northern Star Resources

[Chasero]

LOL at all the above comments! Good things on the horizon in my opinion and I bet a good acquisition will be occurring in the near future.

Yes, they are probably investing in another mine..

Going to be an expensive one seeing how $50m in cash won't cover it.

I'll probably hold till the end of march either way.

 

[papatee]

Read the announcement - it's a capital raising.

So presumably shares will get diluted. Not a good thing (at least until said capital amounts to discoveries of more gold...).

I'm no expert though, I'd like to hear others' thoughts and am wondering why nobody else has mentioned this.

Capital raising often leads to short term weakness due to:
1. Dilution as you've mentioned above
2. New shares usually issued at discount to current price, and
3. Expectation of market that price will move back towards issue price, and that stock will be able to be picked up cheaper than current levels.

These factors often put brakes on share price short-med term while new shares are issued and absorbed by market.

Exceptions to above can occur if company can get an issue away very close to (or even at premium to) current share price, or can convince market that funds raised will be utilised in way that will have an immediate & significant boost to company's prospects.

You'll just have to wait and see the terms of the raising when announced next week.

I thought this company was swimming in profits. No debts... now it needs more money??!!

WIll have to see price action on tuesday i guess

It's quite common for spec companies such as these to take advantage of any quick share price appreciation to raise a chunk of new $$$. Indeed, the cynics amongst us would suggest that in many cases price run-ups prior to cap raising announcements are manipulated to ensure the co. can get the best price possible for the raising

By the way, these are just general comments and not directed at NST in particular. I don't hold - just watching at present.

 

[Chasero]

Capital raising often leads to short term weakness due to:
1. Dilution as you've mentioned above
2. New shares usually issued at discount to current price, and
3. Expectation of market that price will move back towards issue price, and that stock will be able to be picked up cheaper than current levels.

These factors often put brakes on share price short-med term while new shares are issued and absorbed by market.

Exceptions to above can occur if company can get an issue away very close to (or even at premium to) current share price, or can convince market that funds raised will be utilised in way that will have an immediate & significant boost to company's prospects.

You'll just have to wait and see the terms of the raising when announced next week.



It's quite common for spec companies such as these to take advantage of any quick share price appreciation to raise a chunk of new $$$. Indeed, the cynics amongst us would suggest that in many cases price run-ups prior to cap raising announcements are manipulated to ensure the co. can get the best price possible for the raising

By the way, these are just general comments and not directed at NST in particular. I don't hold - just watching at present.

Thanks papatee.. very informative post.

 

[Moit]

Thanks papatee.. very informative post.

Hi guys. My question is why do they have to have a trading halt for a cap raising, unless they want to specify on WHAT they want the raising for. Maybe for an acquisition. Not sure.

Cheers Moit.

And Gringotts, you like my avatar do you. That's me all over mate, lol.

 

[tech/a]

Will continue to play this as planned.

Click to expand

 

[Sutekh]

Ill be selling at open.

Will continue to play this as planned.

Click to expand

View attachment 46120

Hi tech/a, 'as planned', meaning you will sell on open or at your stop of ~1.06, should it fall?

Watching this one with extreme interest.

 

[tech/a]

At stop.$1.06

AND OR

--Ill hold through open.
re adjust my stop at break even ($1.11) and watch.

Fundies should be all excited on this mornings announcements.

 

[Chasero]

So shares slightly diluted @ 98c... but they are trying to offset this by the ann today.

Will be interesting to see what happens.

 

[Chasero]

So shares slightly diluted @ 98c... but they are trying to offset this by the ann today.

Will be interesting to see what happens.

Ouch.. -10%... need to hope for some late insto buying in the arvo...

Oh well... stuck long on this one

 

[jah008]

Ouch.. -10%... need to hope for some late insto buying in the arvo...

Oh well... stuck long on this one

My stop got jumped this morning. Bit of a crazy opening. I decided to hold and see what happens towards this afternoon. I think investors will buy up all the stock that is selling cheap later this arvo. Seems to be coming back up a little. See what comes of it.

 

[Chasero]

My stop got jumped this morning. Bit of a crazy opening. I decided to hold and see what happens towards this afternoon. I think investors will buy up all the stock that is selling cheap later this arvo. Seems to be coming back up a little. See what comes of it.

If I had any free capital I would've bought it at 0.93 >_>

So many people selling below the CR bid.. oh my!

NST is definitely not worth below 98c...

 

[mr. jeff]

placement at 90c.
Probably not easily accessible to people who will take 10% gain anyway...
Will know shortly how much buying support there is at these levels. Just adding cash in while they can it seems.
A lot of advertising for this stock recently so hopefully the momentum stays.

 

[Starcraftmazter]

Can't believe I had a chance to buy at 92c

Serves me right for sleeping in

What does everyone make of the 2 largest shareholders selling their take? Is it purely for the instos or something else to it? Do you think there will be more demand than the amount of shares they sell from them?

 

[tech/a]

Gapped straight through my stop.
Will massage myself out throughout the day.
Next------

 

[notting]

So will they offer their retail share holders anything?

 

[Starcraftmazter]

So will they offer their retail share holders anything?

Doesn't look like it.

 

[papatee]

Hi guys. My question is why do they have to have a trading halt for a cap raising, unless they want to specify on WHAT they want the raising for. Maybe for an acquisition. Not sure.

Cheers Moit.

And Gringotts, you like my avatar do you. That's me all over mate, lol.

Hi Moit

The trading halt is called to try to prevent the possibility of any punters with inside knowledge being able to trade prior to the rest of the market being informed of the terms of CR. It also ensures there is no extreme price volatility and/or manipulation during the period the raising is being finalised, which could potentially derail the entire exercise.

The details of what they will use the raising for are usually provided as part of the CR announcement, not in the trading halt announcement.

P.S. Love your avatar too Moit . . . . and totally identify, lol!!

Exceptions to above can occur if company can get an issue away very close to (or even at premium to) current share price, or can convince market that funds raised will be utilised in way that will have an immediate & significant boost to company's prospects.

Issue is at a fair discount and nothing earthshattering re how funds will be used so not surprising to see this drop back towards issue price this morning. Perhaps the funds are to be used for a near future acquisition but at this point just appears to be an addition to their bank account and dilution for shareholders. Doesn't affect their fundamentals though and some may view this as an opportunity to top-up on price retrace.

Tech - will be interested to see your analysis later of today's action and likely implications/conclusions from TA perspective.

 

[tech/a]

Will take a closer look tonight.
But Ive just finished getting out at .99c
Ouch!

Currently we have huge volume on the gap down.
Lots of supply.
I expect this gap to be difficult to close.

The next few days will tell a tale.
But for me Im out waiting again for opportunity if it presents.

 

[Moit]

Hi all.
Well a disappointing day for NST. I'm just praying the Sp gets back to its highs sooner than later...

Thanks Papatee, but i do realize that the idea of a trading halt is so important information isn't leaked to the investment community... It all makes sense now. (Hence the big spike a few days ago from 96 cents to $1.10 ish.) Crickey if knew about it, i would have sold out to. Its just ashame instos drove the price up, and sucked in us mum and dad investors. Then drove it all back down to collect. What hope have we got while ever they can do that.

Hi Tech. You weren't sticking around for a few days to see how things could have panned out.

What worries me is that there was mention of 50 million shares and what are we at so far 43 odd million, minus what us smaller retail investors have bought and sold. So will this continue for a bit longer. My thinking yes. Anyhow just my thoughts with a little bit of frustration.

Cheers Moit.

 

[notting]

May go and try TRY