I don't get it.
In quality terms, they report what I thought was in the bottom decile of results
[*] in the February reporting season, and on the back of that they decide to pass the hat around to raise a large dollop of capital, equal to half the value of the company.
49 times out of 50, those events would see the share price crash right through TERP and probably end up below the raising price.
Not MCE...it's trading merrily at 12% above TERP and 27% above the offer price.
I wasn't around last week when they would have been doing the roadshow to support the raising, but whatever they said during the presentations must have demonstrated a level of salesmanship that would also sell ice to Eskimos.
I fully expected to come back to a stock price sub-25c.
Like I say, I don't get it.
[*] When you sell your products basically at cost, you will run out of money at some point:
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