Dilution for what? Funding for further aquistions? why is it...

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Android789

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30/08/16

23:05

Post #: 18807594
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Originally posted by goldbear77 ↑

well a lot of it is repackaged information already in the market.

Theres a $1.5m added sales though thats very nice.

The challenge for me as an investor is to work out how much dilution is goign to be involved in acquiring these businesses vs the value in 2 years

Also appears there is collusive behaviour in the market - yesterday;s rip down was someone getting set with foreknowledge of the announcement. typically thats when mgt is sharing priveledged information with special friend investors.

exactly the same thing happens with EDE and LOM all the time.

I think the shrewd thing here for us on market out of the loop investors is either

- trade the stock - when this happened with EDE and LOM in the run toward financing deals the colluding money pumped the stock price in the run up to dilution to suck in the retail nubs - then dumped it post the transaction completing.
- or buy to hold after the deal is completed.

in both cases the pump was a doubling of the then current share price. so well worth the ride but you dont want to be there for the falloff if you bought the runup

So just make sure you take share price move until vote with a large dose of salt. once deal is done it will shrink a lot before rising later.

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Dilution for what? Funding for further aquistions? why is it assumed they are going to the asx register to raise further funds than they have already got or outlined?

BUD Price at posting: 9.1¢ Sentiment: Hold Disclosure: Held
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Dilution for what? Funding for further aquistions? why is it...

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Horizon firms up ore reserve for Boorara ahead of FY25 Q1 development decision

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Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

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IGO kicks off earn-in copper drilling on-site Encounter's Yeneena play as it adopts new identity

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