this is just my opinion but I feel that at 40% of the rights issue being taken up someones plan may not have been what they wanted and the underwriters have ended up with less than expected.
In this current climate you would need to be well informed of the potential of a company before underwriting it to the tune of $30m.
we all know to some extent the future direction of RES with its resource, location, etc.. and at 40c a share that is truly a cheap entry into what could be a $2 / 3 or even a $4 stock within 12 months.
the information that would be required by the underwriters to secure their involvement would far more detailed and assurances given by RES with greater detail.
then again this is just my opinion but i believe those who took up their entitlements will be greatly rewarded
RES Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
