$70m off the share price yesterday and another $20m gone today. Market cap now $128m. My NAB share platform says an NTA of $1.05!
The problem with some of these steeply discounted capital raisings is that they still remain below the CR price. AXM for example, raised at the post-consolidation equivalent of 20c. Current SP is 17.5c.
The lowrer the SP, the more attractive the company is for a takeover, but it still hasn't happened with HST or PSH or other debt-laden companies. PMP was lucky- debt all over the place and a massive offer compared to SP.
Many companies are looking pretty distressed right now- even the "good" ones. Many aren't being taken over.
MBN Price at posting:
24.8¢ Sentiment: None Disclosure: Not Held
