rights issue with little downside risk, page-13

BSM has been a great disappointment to me in the fact that i bought when i thought they had a plan and a home straight in sight.

Then they did a raising, then the price went > 40c they did another raising so naturally price drops.

Now they want another raising...

The issue for me is what would the current share price be if it was not in a hold ?
As is the 15c mentioned the go price because whatever it is, will be the new price of all shares. There is no longer "free money" in the market anymore.

In hold 08 Jul 2010

Lets look at some prices :

08 Jul 03 Oct
PNA 3.90 2.35
MCR 0.98 0.68
BHP 45.00 34.15

Now MCR has $90M in cash and PNA $175M in cash, BHP Billions. i.e. technically the price can only fall so far for these...

So even if you are generous and say a 25% fall, 22c becomes 16.5c
But in reality, cash strapped operations are likely to be 40 to 50% down.

Cheers