equity raising, page-18

i'm out, i had to offload $200k worth of stock on low liquidity, so didnt want to post before this.

Several concerns for me
(a) if its such a great 'bargin' to participate in the equity raising why isnt the CEO participating
(b) why havent other directors been topping up (not in teh capital raising, i'm talking about several times that the share price has been at $1.10 or less), there have been several opportunities in the recent past.
(c) and this is the MOST IMPORTANT reason, poor cash flow management. For those that want to see the devestating effect poor cash flow management can have, check out
Photon Group, just look at the end dilution that happened with this baby.
(d) i think management is very worried. Look at how they have manipulated things, comming out with a profit update to restore 'confidence' in the share price, and then once the share price comes up somewhat, quickly does a capital raising. For me to invest in a company i HAVE TO HAVE CONFIDENCE IN MANAGEMENT.
(e) for those asking why pay a dividend, because if they didnt pay a dividend, the share price might have tanked more. The dividend was peanuts, but at least the company can say 'we are still paying dividends'.
(f) i think Australia could be heading into difficult economic conditions. I dont want to be holding a company with poor cash flow management going into such economic times.
(g) further note as to cashflow, we 'knew' that cash flow was tight, but based on previous commentary this was 'explained away' through 'one off factors' and increase in required in 'working capital'. We were informed that cash flow would improve into the second half.
We now are informed that cash flow is not sufficient.


I have copped a rather big loss on this whole position (roughly 20%), but better a rather big loss than a massive big loss.

Just my opinion, DYOR