Ann: ROC Announces Equity Capital Raising , page-8

"""""""Most capital raisings have tended to have a sizeable negative impact on the companies implementing them recently.

But if ROC can raise the cash from the instos, at a price not to far off the last sale at 90c, it could be the catalyst for a short-term re-rating.

Here's hoping the raising is at no less than 80c, although 60c appears more likely in the current environment...""""""

Hi All,
Sunburnt, which cap raisings are you referring to? Perhaps all the struggling REIT's?
Most Cap raisings by undervalued co's have had positive impacts. MQG? Company was undervalued due to stretched balance sheet. cap raising removed this doubt, and caused the SP to be re-rated.
ROC? I believe that a correct valuation at todays oil price would be more like $2 a share, however, the market has been undervaluing due to recent mishaps, but MAINLY due to excessive debt. With this cap raising, ROC will have pretty much no debt, solid cashflow, and is getting back to basics. I would much prefer this than stupid moves like selling 10% of BMG for 10 fifths of stuff all.

ROC has $2-300 million of expense coming up over the next year or two in developing BMG, now they can comfortably do this - so maybe the market will re-rate, and include the upside of the BMG operations (not to mention Beibu)

I reckon that the SP will increase before the SPP to retail holders - netting us a quite profitable arbitrage.

Hoping also that the POO will hold around $70, as a collapse now (more than say $5bucks) will put the retail raising in jeopardy