good money after bad ? , page-4

Interesting to see this morning that some rights have traded at 2 cents. Those people now have shares at a cost of 12 cents.

"Now someone please tell me this is not in the best interest of share holders to raise funds like this"

Of course it is the only way that is totally fair to all shareholders. With no dilution. Rights issues used to be the way virtually all fund raisings were done. The reason that the very unfair share-purchase-plans became so popular is because they do not require an expensive prospectus to be issued. Rights issues require a prospectus which means all sorts of legal and other expenses.

The issue does not change the company's outlook in any way, except that it will now have an extra $20m in the bank. If you think it was a good bet before, it is a slightly better one now. But if you don't like the company, then nothing has changed.

I agree that rights trading will expand greatly in volume once those who don't know what is going on (ergo, they should not be in the same room as the share market) get their rights in the mail soon. If the market is flooded with sellers and the rights price drops, then by arbitrage the share price will drop too, to match. There could be good opportunity for those with positive company view. Anyone who heard Andrew Forrest yesterday at the Ivy lunch in Sydney would not need convincing of that.

Vol, I have no shares so don't accuse me of ramping. And in any event, how does a factual chart constitute ramping? What an insult. The price is the price, if you don't take advantage of it, that's your problem alone. I wish that when I was starting out someone experienced had been around to help me. The first requirement for success in the market is be humble and listen to its messages. You either educate yourself with willing help from others, or the market will do it for you the hard way.