re: Ann: Winmar Pro Rata Non-renounceable Rig... Hi Famoso,Any...

re: Ann: Winmar Pro Rata Non-renounceable Rig... Hi Famoso,

Any shares taken up in an entitlement should automatically be credited on the issue date to the same HIN (for a broker account like CMC Markets etc) or ISN (non broker sponsored).

I imagine we might see a pull back in the short term, but how long this lasts - who knows?

One recent example that comes to mind that bounced quickly back post CR is BCC (have a look at the chart for the last month). Another that hasn't bounced back is PEK. Just two examples I can think of to demonstrate different reactions.

I like pro-rata rights issues from the perspective that it gives current investors a chance to participate (or not) in proportion to whatever their current 'skin in the game'. In a SPP, often there are just a few different possible amounts that any holder can subscribe to, regardless of the number of shares they hold, which seems less equitable to me. And if a CR is just through a placement to "sophisticated investors", the little guys don't even get a chance.

A rights issue is always a good time to review where you think a company is at, and how it fits with your investment objectives. So whether or not to subscribe will be a different choice for everyone, depending on circumstances.

I will be taking up my entitlement, but DYOR.

GLTA