All holders have basically lost alot on paper today. and it is to be noted than whenever there is a raising from shareholders the sp usually poops itself to the ssp price.
Where there is a SI raising only the sp usually does not react in a hugely negative way. As a holder i know what i would prefer.
But i note that this 1:10 raising is fully underwritten. Now whatever you say about this raising it is not in Paterson's interests or their clients to see the sp at 3.3c for long. If this was not underwritten i'd be concerned as i think there would a low uptake. Patersons sold $9m of SBL at 3.3c in a snap knowing the 1:10 would take the sp down. They and the PI clients dont expect the sp to stay this low for too long.
The expected close of the 1:10 rights issue is 13th April with full settlement about 21st April.
I'm sticking SBL in the bottom drawer til then. and buying a few at these prices.
I aslo believe SBL gave false expectations when they mentioned Jan start up . This has created a negative perception with some. It was always going to be 1st qtr 2011. Now its April. That 1st gold pour will calm a few nerves hopefully.
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