Paterson will just take profit and leave the share price in ruins- 10c is the new target, I suspect. That still leaves 20% profit in there for Patersons, and a drop of some 35% for shareholders who were in before Patersons came along. It is pretty cruel for PTR to do this to SH's. Other companies might get some good news and a share spike before a capital raising, so there is now blow, whereas we have had nothing to keep the SP up, and now this...
this was my first actualised loss on the share market- i have tended to wait until a share makes a profit before selling, but this one? As soon as I read the ANN with "10c" and Patersons in it, I sold, and it felt good to get out of this dog. I have had stocks with low share prices, and the company does a SPP at the same price, so there is no share price erosion. Why PTR couldn't have taken the same path, or tried to get a placement at above the current SP by some cornerstone investor (there is supposed to be some conslidation in the sector, apparently- GDY and PTR were in the AFR the other day re this), is beyond me.
Good luck shareholders. Patersons laugh all the way to the bank, and shareholders lose their money. Petratherm managements have rocks in their heads. It was always hard to have faith in this company.
PTR Price at posting:
11.4¢ Sentiment: None Disclosure: Not Held
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