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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...
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22 REPLIES 22
Super Contributor
Maybe because 30c is 30 times more than 1c.
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007REN
Occasional Contributor
So do they think it will be 1c?
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Super Contributor
A lot of people think it will be Zero
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Super Contributor
what if they bought at R0.27 last friday?
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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.
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Super Contributor
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Super Contributor
Its called a dead cat bounce..
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Super Contributor
Its called a dead cat bounce..
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Valued Contributor
some large shorts had their script recalled = short squeeze of epic portions
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Super Contributor
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Frequent Contributor
yip agree... she's out of control... can only spell doom
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Super Contributor
And back down we go.. 200% move in a day..
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Super Contributor
So what if we buy the rights at 1 or 2 c now?
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Valued Contributor
each right entitles you to buy 1 shares at 21.4c
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Super Contributor
Don't think I've ever seen price movements like this before.
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Super Contributor
Lots of suckers that lost some money today because they don't understand how this works. They just buy.
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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!
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Valued Contributor
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Frequent Contributor
Realistically can lonmin shut its doors to 36000 mine workers? what would the impact be on the economy and world ?
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