Hi Smithy14---How do you think the recap is going to work ?
Current market cap is $ 50m against Net assets of $ 2billion.
The proposed rights issue of $ 350 m will see GSO owning 80 plus percent of the company, which I am sure nobody wants.
If the SP can get to 12 cents, the Share issue starts to make sense. I anticipate some large buying to boost the SP from a stupid level to just a very cheap level.
The SP was killed by Allan Gray dummy spit, and everyone is in a bit of shock after absorbing such a massive volume of shares. But global conditions are now much more promising and I feel we are over the worst.
If AG did not snap, what would the SP be today ? I reckon closer to 10 cents given improved market outlook ( look at FMG massive SP rise for example)
ARI Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
