Hi whiskeyjack,
I have been out of town for a week.
As far as I am concerned, with the amount of money WSP has, there was no need for the private placement. With the warrant, there is over 20% dilution. Why sell a $100 stock for $2 bucks? The only rational explanations that make any sense at all (over and above greed)is that WSP is being "groomed" (subject to this winter's drill results and the big bulk sample results) for either a merger (possibly ABX or SUF?) or a possible take over(with insiders holding more than 10% of the company, a hostile aquisitor can't force the purchase price if more than 10% of the stock is withheld from an offer).Also, if there was a bidding war for controll (say between Debeers and RTZ), with ~25% of the stock in strong hands, it is unlikely that controll could be bought for too cheap a price. I remember with fondness the bidding war between Inco and Falconbridge for Diamondfields.
I will be very interested in seeing who is on the private placement list when it is filed. One can only assume that the current market maker and sponsoring broker for the rumored TSE listing will have taken down a good chunk of it. No one in my network yet knows anyone getting some of this privated placement.
As for share price volitility, I learned along time ago that I am not a good trader. I am now sitting back and waiting for bulk sample results next May or June. Needless to say, the private placement has forced me to adjust downward, my expectations as to how high this stock could/should go.
regards,
teevee
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