What does this mean?

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  1. #1

    Join Date
    Jun 2007
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    What does this mean?

    If a stock is suspended because "pending release of an announcement in relation to the issue of shares and convertible notes by the Company which is price sensitive in nature", does it mean this is a good thing or not?

    Thanks!


  2. #2

    Join Date
    Mar 2006
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    It can mean either a good or a bad thing.

    You need to post up what company you might be interested in here.

    Sometimes companies ask for trading to be suspended to heighten interest and over a weekend it gives others time to look at the stock and get ready to buy.

    It could be to raise some money here if they think this is the right time.


  3. #3

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    Mr. Buffet would be able to further elaborate here....

    It can be any kind of sensitive information that influences the value of the stock, both negative or positive.
    I think (correct me if I m wrong) that those information are only published at night in Europe once the stock exchanges is closed.


  4. #4

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    thanks! It's actually a local HK stock...

    BRIGHTOIL (0933.HK)

    Thoughts?


  5. #5

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    its usually 'not too good' a thing for a company to be raising funds, especially in this kind of market.

    but as you know, its never predictable. market might be anticipating this for a long while and the terms are more favourable than expected, so there might still be a rally if the overall market sentiment is good...

    so wait for the relisting and u will know if its good or bad news/effect


  6. #6

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    Jun 2007
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    Thanks. Watch this space I guess!