Happycats. I don't know of any investor or any business that would punt $100m and have to pay $2/3m PA in C&M.
OK, so lets assume it is a cashed up entity - do you know any that would tie up $100m when their normal business would probably return 20%+ ROI of capital employed, for the chance that one day asset prices may go up?
Not sure what sort of business you are in, but most would walk a mile from this sort of risk.
As an investor would you pony up a big wad on this risk?
If so you may get the chance very soon in a rights issue CR.
Day by day the reasonable expectation of price for a rights issue is diminishing. A week or so back I suggested 18-22c and over the week I went to 10-15c. Some wag suggested 8c - they may not be too far out if the SP keeps falling at 5-10% per day. A slaughter if ever I saw one.
As I said yesterday, this is no longer a 'sell', it's a 'get out ASAP situation'. And another 10% down. Can always buy back in once the dust has settled. All strictly my musings and not advice in any shape or form.
LYC Price at posting:
18.0¢ Sentiment: Sell Disclosure: Not Held
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