Just had a listen to ymyc podcast & their comments didnt sound right to me - I qoute
"they did just do a renouncable rights issue...i will say the company handled it pretty disgracefully in that the huge shortfall rather than giving it to shareholders they gave it all to the underwriter who of course is just going to dump it straight back onto the market."
hmmm, "huge shortfall", from my understanding 21mil shares have just been issued, 85% (18Mil) if which were taken up by shareholders, leaving <3mil which went to Patersons. Applications for 8mil to participate in any shortfall were received, 500k of these were allocated & the rest refunded.
As to the "Dump", I guess that could have been Patersons driving the price down from mid 50's to high 40's from the 22nd-29th, reaping their 7-8c profit per share, but is this the reason for the recent strong rebound in the sp? methinks not.
While a pro rata of the shortfall could/should have been made to shareholders, I hardly see this as being a "huge shortfall" or "handled pretty disgracefully", guess thats why these tv "analysts" get paid to talk the talk, not walk the walk...
WDR Price at posting:
58.9¢ Sentiment: LT Buy Disclosure: Held
