Forum Archive Index - October 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

CLH has been moving between $4.10 - $4.40.

 

The question is: Will it break out of this band soon? My post:

 

http://www.sharechat.co.nz/archives/2001/09/msg00098.shtml

 

mentions that CLH has 94.7 mill. shares. The Founders of the company held 55 mill. Twelve mill. of these have since been placed. 

 

As far as I know, the company continues to operate as expected. Chances are that the market feels that a possible overhang of shares is constricting share prices.

 

There are still 43 mill. shares held by the Founders. They alone know how many they want to continue to hold.

 

There has been no statement of intention by them, thereby leaving the market in the dark.

---

What is the shareholder to do? I am not giving advice; I feel that the company has a great future ahead of it.

 

For that reason, I shall remain a long term shareholder.

What I have noticed time and time again, is, that significant lifts in share prices occur once the logjam of an overhang is freed up.

 

That can happen in a flash. Freeing up shares has the additional benefit of larger stakeholders having already been allocated part of a placement, wanting to increase their stake; this is the stuff leading to corporate plays in some cases.

 

Then again, we may perhaps need to wait till the price has increased sufficiently, perhaps because of an excellent progress report, and this in turn may induce the Founders to sell a further part of their holdings.

 

Who knows?

 

Gerry

Holds CLH