As private investors we have come to loathe private placings. If the shares are 10p before City fund managers are made insiders they are 8p by the time a placing is completed as somehow word seeps out. about any AIM listed stock. Odd that. And so the placing is done at a 20% discount to 8p and a stock which you were paying a share price of 10.25p a week ago is suddenly being offered to institutions only at 6.4p. It is not as if the fund managers are any more likely to be long terms holders than you are. They will spiv the shares out at 8p given half the chance and so boast of a 25% return in 2 weeks.
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