Is it poor form to gift a few million shares at 58 cents to a 'mate', 'sophisticated' investor. Only to have your mate dump them onto the market 6 months later?
I will remember this next time they do a cap raise. There is no need to gift to mates at 10% under market, only to have your mate 'Ben Dover' to you a few months later.
Now, that wrath spoke, I think they only dumped about half their shares. They were up to about 11 mill shares late last year. And aside from the few million given them at the cap raise, they bought a lot on market after that.
But.... I will surely let Zenith know that it would be better to let Ronnie Retail have more than crumbs the next cap raise. And the more I look, the more I expect another raise. But I think it is good to have it, as the share price is now solidly averaging over 75 cents. So any raise would be above 70 cents.
Now a Cap Raise only appears if they sign a big contract. And I am pleased with the speed they applied the last cap raise to the business... profitably. So, re Zenith, with such capital expense needed to earn money, a cap raise is actually good. It earns money! Mind you, the next one Moelis better not be allowed to get 'set'. Let them get their $15,000 worth like all other investors.
Honestly, though, when all said and down, I guess Moelis is entitled to pocket some profit of their wise investments. Heck, even I sold 6.5% of my shares at 78 cents. It made me sad. But I just consider it my dividend for the year. And if we do get a cap raise, then I have some cash to participate. And, perhaps we can be happy Moelis has helped to cement the 'over 75 cent' price. Their number of shares sold does have the 'weighted average value' set in stone. So, it even protects us!
I feel the party that picked up the 6 mill shares has done well. With the half yearly being so good there is still some upside, I think (that is, the underlying business is not a one off EPC project like two years ago, but solid, solid good margin, ongoing BOO)
