fair points. But could a company not seek to have their rights issue underwritten before announcing it? I've seen several times a company's shares fall below the rights issue price, with a low uptake, but the company's funding was never in doubt due to it being underwritten.
One could also argue that if short sellers sold a stock down below its rights issue price, that perhaps the rights issue price was set too high - after all, if the rights issue price is attractive, there should be buyers mopping up those short-sold shares at a discount to the rights issue price.
Re-reading Imdex's funding announcement, it also indicates they'd secured the support by instos for the placement already, so the funding seemed fairly certain (if they had chosen to proceed down that path)
Anyway, we'll have to agree to disagree on shorting I guess. I just can't see how it can hurt prudent investors who have done their due dilligence. Let's focus more on IMD's future - very bright, and about to explode I'm sure!
IMD Price at posting:
62.5¢ Sentiment: Buy Disclosure: Held
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