better rations than rashers for our little pig

So our fattening pig has been spared the butcher's knife. At least with this capital raising the immediate threat of receivership (the butcher's knife) has receded and this was a real dampener on the stock. While the raising has been arranged at a significant discount to today's high, it was probably far closer to market value when pieced together, as someone observed earlier.

In a strange way, this might be the saviour of the company, even if it was the last thing we punters were hoping for. Now, with any luck, breathing space has been bought which may allow the long-awaited Sentry deal to come to fruition. Face it, we are no worse off than we were a week or so ago in terms of share price. Yes, there are an extra 88m shares on issue if the SPP is put to bed, but this is small beer in my view if the JV goes through as we all hope.

While we might all wish the raising had been completed at a higher price, management has to deal in the real world of sub-prime nervousness, where liquidity comes at a price.

I see the raising as frustrating but necessary. Better the gloss is knocked off the stock than the company goes under. If the JV proceeds as hoped, this will seem but a speed-hump in the rear vision mirror. Our little piggy may be on rations for a while, but that's better than rashers...

Just my take. I'm going to ride this out.

DYOR

Gupper.