Persuader,Agree that after a rights issue has been consumated...

Persuader,

Agree that after a rights issue has been consumated share price should fall due to dilution.

For example if Anvil has a one for five rights issue for 35 cent the dilution will be about 16%.
However this dilution is halved in real terms as right holders have contributed half the previous market price of the shares.
In theory Anvil share price should drop 8%.

Now if there was a one for four -- or one for three rights issue - or whatever ---- the dilution would be greater and share price would have a greater fall to compensate.
Those who took up options would be in a similar financial position as although share price has dropped they hold an increased number. The result should be close to nuetral.

In time as market appreciates the impetus gained by the company being more liquid and the use of capital to develop new mines - or whatever - share price will increase to outshine previous all time high.

Any holder of Anvil shares who takes up the entitlement to the rights issue should be well in front.

Instead of allocating the shares to an institution at below market price and displeasing share holders a rights issue is allocating shares to the shareholders at below market price.

Remember speculation about a possible rights issue is speculation.
Miningnut is usually close to the mark and he has suggested the rights issue is on the way.
Anvil market trading suggests he could be correct.
Institutions would know NOW.
Large turnover with reasonable steady share price is alerting us to the fact that if an announcement is impending it will be beneficial - or at least nuetral.

Cheers,

NT