Ann: Voluntary Suspension-ODN.AX, page-52

Don’t let capital raisings turn you from value investor to speculator

At face value, a rights issue can create opportunity to mitigate any dilution, assuming market capitalisation doesn’t change. But the trouble with speculating on this outcome is that it runs counter to what happens in most instances. It’s equally important to remember that if your goal is to capitalise on the spread between issue price and traded price, you’ve fallen from investor to speculator – and winning at this game requires fast footwork.