Gotta look holistically to get proper perspective. Argument about dilution is an irrelevant academic argument because, as 2020Flash has already pointed out, the dilution provides funds for an acquisition. This is not a raising to prop up a teetering balance sheet. EPS is of more significance than dilution. The effect on EPS will appear eventually in RRL's announcements after the Tropicana acquisition has been completed. Only then will we be able to see whether the whole deal will increase EPS and by how much.
Maybe somebody can study IGO's old announcements to figure out the effect Tropicana will have on RLL's EPS, taking the dilution into consideration. I couldn't be bothered to do it as I think that RRL will obviously have done the sums before they embarked on this project. If the effect on EPS will not be good then what would be the point of it? There must be some advantage to RRL, maybe EPS advantage, maybe strategic advantage, maybe some other advantage. Whatever the advantage, dilution is irrelevant.
RRL Price at posting:
$2.69 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)