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Why do people sell shares for 30c?

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SimonPB
Valued Contributor
sure, but it could go biz rescue and that'll see shareholders out of the game .. and if they do close completely imp and ams will rocket on back of improved pgm pricess
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Not applicable
raising capital to extend its debt facilities tells you everything you need to know. Lenders are not willing to extend their long term debt facilities to Lonmin, which means Lonmin doesn't have enough assets to offer as collateral. So when Lonmin goes into business rescue (and that is almost a certainty, in my opinion), you as a shareholder will get taken out - just like Abil shareholders. Shareholders are bottom of the pecking order when it comes to an asset strip. The state will reclaim the mining license (let's not even begin to speculate what those corrupt *****s will do with it), and Lonmin will be left with what exactly, some mining equipment, tailings, production facility and a couple of holes in the ground. Hey - some miners have pulled off some legendary recoveries (read up about Metorex, for example). But that was in a commodity boom - and Metorex didn't have competing self destructive labour unions to deal with.
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Vypir
Contributor
I agree. I remember a proud union "leader" proclaiming back in 2012: "We will bring Lonmin to its knees". Well congratulations my man, you did it! I'm running some small CFD sorties on it as the dead cat bounces (each bounce a little lower), but I take my profits early and I'm ready to run for the hills. That said, this expired feline made me good money so far; bought at 27c sell at 111c, bought again at 49, sold at 91. I'll sell the last bit off at just over 100, and might take a final stab at it if it drops below 40 today, but I think the 9 lives are almost spent now and this little kitten is about to settle in the dust.
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