is it a good trade robbbbbbb kevi, page-24

Sorry to be a party pooper again...

I guess this is a fundamental question on charting.

Quote:
FKP Property Group (FKP) confirms that it has completed the initial allotment of new stapled securities following the equity raising announced on 25 June 2009.
FKP has allotted 508,968,361 new stapled securities under the Institutional Entitlement Offer and 8,568,915 new stapled securities pursuant to early valid applications received under the Retail Entitlement Offer.
Trading of these stapled securities will commence today and holding statements will also be dispatched today. Following allotment, the number of FKP stapled securities on issue is
869,941,043. The Retail Entitlement Offer closes at 5.00pm (AEST) on Friday 17 July 2009.
Quote end:

In other words, there are almost THREE TIMES AS MANY SHARES AS BEFORE. A substantial dilution has occurred.

Should the charts be adjusted somehow? In other words, today's 50c SP is not the same 50c SP as before the dilution?

And is it correct to draw trend lines on a single chart that has pre-offer SP and post-offer SP.

I have seen charts adjusted for ex-dividend drops. Okay, lets not bother with that. But here we have something a bit more dramatic...

Happy trading