re: Ann: Extension to Closing Date for Rights... My take on it...

re: Ann: Extension to Closing Date for Rights... My take on it at the moment is not to participate in the rights issue as most people shouldn't if the price is where it is currently at. That then means the dilution is limited and so won't really impact my shareholding.

If the share price goes down further no problem, I can go back in on market and buy cheaper than the rights issue. If it goes up no problem because I'm not diluted anyway and therefore no difference if there was a rights issue or not (ie I get something close to the full value of any share price rises without taking any risk of participating in the rights issue).

That way by not participating in the rights issues (and assuming most shareholders don't as well) I limit my downside risk and still leverage the upside risk. Participation increases my risk at this stage, doesn't reduce it (the idea of a deeply discounted rights issue is to reduce the risk of participation but that has backfired on management on this instance).

If some good news comes out and the share price rises before the time is up on the rights issue (and nothing to say they won't extend the closing date again) then I still have that option.