The placement shares are well in profit so they could be used to short the stock or just sold for some profit which will put pressure on the SP and test support.
For example:
The Soph dumps 30mil of shares into 1.3c - 1.4c this triggers a heap of stop losses and panic selling pushing the SP down to 0.9 - 1.1c then the Soph buys all the shares back on market from 0.9 - 1.3c so they are now holding more shares than before and are still in profit.
When the above happens it's usually short lived and the SP gets pushed back up (bounces) to where it was in the first place while the traders trade bringing in the volume and the investors step in looking for cheap heads.
It's not a bad thing it's just necessary so the market can test the supply and get on with trading as usual once they know the overhead from the CR has been churned.
There may also be no dumping of the CR shares, no one knows what the soph's etc will do so the market is just waiting for them to reveal their hand.
I have taught myself how to trade and the above is in my wording so it might not be explained the best but I hope that helps a little and makes sense.
PD
Add to My Watchlist
What is My Watchlist?
