I agree with most of what you have said as it is correct &...

OriginallypostedbyAz888

Ok-I’llhaveagoatyourfirstrequest.

ARightsIssue,inthiscase,wasn’ta,“farbetteroption”IMO.But,yourquestionneedsfurtherqualificationbyyoubeforeitcanbeanswered.Iapologiseifyoudidthispreviously,Ididn’tseeit.

Whenyouassertthatit’safarbetteroption,whoistherecipientofthisbetteroption?Shareholders?Orthecompany.Becausetheyarenotthesame.Sometimesthesearealignedandsometimestheyarenot.Timeisalsoafactor.

Inthisparticularcase-aRightsIssuetakesfarlongertorolloutandtheyaremorecostly.Bothintimeandmoney.

Whenyouarebuildingthesecompanies,youwanttotryandgetyourspreadright.Retail,brokersandinsto’s.It’salsoatimingthing-youdon’twantinsto’s(orlargeonesatleast)tooearlybecauseitcanbeproblematic.Ifyourspreadofretailistoolarge,that’sproblematictoo-nowadays,youcantellbytheaveragesell,it’sjustaveragejoewithaniPhoneandaspare$5000thatplaguestheASXtryingtomakealittleextratohelppayfortheirbread,milkandcigarettesattheendoftheweekandwilljustsellnews-good,badorindifferent.

AlotoftheseretailpeoplehavecomeinbecauseoneofourholdershasanaspirationtobeaTwittergod-justlikehecreatedourfirstcompetitor.Fortunately,theirgroundisn’tflash.

Brokers,likethemornot,areanecessaryevil.Onceonside,theyrepresentalotofbuyers-buttheyarelargerthanyour$5000crewandoftenrepresentlargergroups.

It’slikemakingacake-theingredientshavetoberight-yourspreadisimportant.Butunlikeacake,youdon’tunfortunatelygettocontrolthat-themarketisdynamicandthere’sthehumanelementtoo.

SowhyisthewayManagementdidthisCRbetterthanaRightsIssue..?

Asidefromthepointsabove,afteracompanydoesaCR,nearlyALWAYS,themarketcomesdowntomeetit.Orthereabouts...Soshareholdersgetachancetobuyonoraroundthisnumber.
IfyouthinkdoingaCRviaRightsIssuestopsthat,you’remistaken.Youcanbuysharesnowbecausesomeoneisgoingtosellyouthem-cheap!

Therearesomeshareholderswhowanttoturnaquickbuckhereandtherearesomewhoareinitforthelonggame.ThecompanyisONLYinitforthelonggame-theyhavetodelivertheseprojects.Thisiswhyshareholder“interests”andcompaniesaren’talwaysaligned.

Thecompanyisobligedtocreateshareholdervaluebydoingtheabovementioned.ThecompanyisNOTresponsibleforhelpingpeoplepaytheirbillsbytrading.

It’sEntitlementCitynow...Anyonewhothinksit’sshareholdersFIRST...Doyouthinkthesamethingaboutyourfamily..?Thesumofthepartsareneverequaltothewhole.It’sthesamewhenyouruncompanies.It’sactuallythecompanyfirst.That’showyoubuildsuccessfulcompanies.Notshareholders,notmanagement...thecompany.

Soallyoushareholderswhoscream,“WetheShareholders...”maybebettersuitedstandingonthecornerwearingacardboardboxsellingpencilsfromacup.

I’mjustgladthatmanagementknowEXACTLYwhatthey’redoing.

IMO

I agree with most of what you have said as it is correct & provable, but this isn't -
Quote:
"If your spread of retail is too large, that’s problematic too - nowadays, you can tell by the average sell, it’s just average joe with an iPhone and a spare $5000 that plagues the ASX trying to make a little extra to help pay for their bread, milk and cigarettes at the end of the week and will just sell news - good, bad or indifferent."
etc etc

Your 'average Joe' would be dead from starvation or fully detoxed off Cigarettes if he used the ASX 'bank' - takes ASX 3 days to settle and maybe 2 more to access $$. And he definitely wouldnt have a 'spare' $5000 to invest if hes worried about food anyway.
Average Joes (outside the Top 20) actually own 52% of VRX (last list)
Average Retail Joes buying & selling is called trading not plaguing - try taking retail out of the ASX and see what happens...

Traders/Brokers use Iceberg Orders - like your '$5k sells' to keep under the radar and the Bot which was spiking the closing price every day for a low CR price (more dilution). Day Traders sell good/bad & ugly but average Joe gets the blame again.?

Brokers with 'contacts,' is necessary but Retailers 'contacts' are suspect - especially ones from HC or Twitter - you know the average Joe variety shareholder that stick around through suspensions, always buy, holds and don't complain (usually).

Money is $$$$, doesn't matter which group it is from.
Yes the Retails v Sophs v Brokers all have different group characteristics and the Company benifits from each in different ways, but your Average Joe is getting a lot of stick he doesn't deserve.