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Why do people sell shares for 30c?

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007REN
Occasional Contributor
I have a question that may be a stupid one.. but why would anyone sell their shares for 30c range. For example if you look at the Price graph the current value for a share is the lowest now than in the past 10 years... So Say some investor bought shares @ 800c a share then WHY would you sell at 30c or 31c? You would lose a lot of money. If you look at the daily tradeÂ’s volume and Value then there is a lot of people that bought for more than 31c but are selling below the price. If you bought before 20th November and you sell now you will make a huge loss. so why would you sell...
22 REPLIES 22
prancing_horse
Super Contributor
Maybe because 30c is 30 times more than 1c.
007REN
Occasional Contributor
So do they think it will be 1c?
prancing_horse
Super Contributor
A lot of people think it will be Zero
suki
Super Contributor
what if they bought at R0.27 last friday?
Not applicable
its value could be less than 0 - they need a rights issue to raise $400m - at $0.3c a share - that is a lot of shares! So, as an investor, you would be compelled to exercise your rights to avoid the 1/3 dilution effect. Then - and here is the kicker - you have to assume that a) the rights issue will be fully subscribed, b) the comrades don't strike next year, and c) platinum group metals increases in price to a point where Lonmin can start making a profit again. Actually, you can add d) in that a mine finally meets its production targets and projected production cost. Failing these 4 points, Lonmin will have to use your hard earned reluctant capital to pay for working capital, eventually collapsing and leaving you 15% below 0. If you haven't sold yet - you should be getting the hell out of this. Seriously, do it while you can.
Rovert
Super Contributor
Hali
Super Contributor
Its called a dead cat bounce..
Hali
Super Contributor
Its called a dead cat bounce..
SimonPB
Valued Contributor
some large shorts had their script recalled = short squeeze of epic portions
Russ
Super Contributor
Flyguy
Frequent Contributor
yip agree... she's out of control... can only spell doom
Hali
Super Contributor
And back down we go.. 200% move in a day..
Creature_of_the
Super Contributor
So what if we buy the rights at 1 or 2 c now?
SimonPB
Valued Contributor
each right entitles you to buy 1 shares at 21.4c
Russ
Super Contributor
Don't think I've ever seen price movements like this before.
kwagga
Super Contributor
Lots of suckers that lost some money today because they don't understand how this works. They just buy.
Not applicable
I repeat my message - if you are a holder of Lonmin, you have been gifted an opportunity to get out of dodge - I would take it!
SimonPB
Valued Contributor
Flyguy
Frequent Contributor
Realistically can lonmin shut its doors to 36000 mine workers? what would the impact be on the economy and world ?