"small shareholders getting r**ed by instos"
The placement was at $0.12, the rights issue is at $0.10. I think this is fair to current holders who are able to afford the issue.
Current small shareholders who do not want to cough up more cash for the 10c rights issue may try to act as arbitrageurs to try to take advantage of the premium it's trading at and then apply for the rights issue. This is the only reason why there's been downward pressure today (plus people jumping out completely thinking they've made a mistake - more to the instos that way who are waiting at the bottom with buckets for more bailers)
"whose to say the share price won't already be down to 10cents."
That's the reality of the stockmarket. Who's to say it won't be 1c? Sellers sell and buyers wait. Question is, are you willing to bet on this horse 'cause you're betting on it running a little faster for the next 100m, or till' the finish line?
Share price will recover by Christmas IMHO.
cap raising, page-6
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)