Disappointing, yes. I agree 100% with pretty much everything you've said.
But if the underwriter (and the sub-underwriter) want that stock overhang, it's perfect for them right now.
Fosters know more than we do. This has been proven by the fact that several times I've noticed they have reported facts in their broker reports that have not been previously announced to holders by IOH. Just recently they reported that "several" interested parties had conducted due diligence on Iron Valley - small holders had no idea this had ever occurred.
The major shareholder also knows more than we do. He might ring the management team and speak with them personally, or he might casually ask his mate Andrew "so, what did you get up to this week mate?" over lunch.
Andrew might reply, "I had a few meetings with a bloke named Alwyn... But I probably shouldn't go into details as it's confidential." Enough said. Perth is a small town but when you have mates that rank in the mining elite it's microscopic and I can assure you these guys know everyone and everything.
As for management failing to promote the CR effectively, again I agree 100% but the sad fact is that only one shareholder matters and as long as he is happy, the rest of us can either sit here like mushrooms and hope for the best or simply sell our stock and walk away.
I doubt management will throw us a bone over the next six days, I can't see how it would benefit them as the rights issue is 100% underwritten and I suspect they are indifferent to how many small holders take up their rights.
IOH Price at posting:
$1.58 Sentiment: Hold Disclosure: Held
