Hi,The shares went ex entitlement today so a fall in price was...

Hi,

The shares went ex entitlement today so a fall in price was to be expected although perhaps it was a little more severe than anticipated. If you buy the shares today you do not get the opportunity to buy more shares in the rights issue at 10c each.

The correct advice in regard to the rights issue is to take up your entitlement even if you need to sell shares to find the money. Much better to sell shares at 12c and use the money to buy them back in the rights issue at 10c than to ignore the issue altogether. Because they went ex entitlement today, if you sell shares now you are still entitled to take up your entitlement to the rights issue for the shares you held as of yesterday. For every four shares you held as of yesterday you are entitled to buy three more at 10c each in the rights issue.

I intend to take up my full entitlement and not sell any. Nomad has a new Board, new management and will be reasonably financial after this rights issue. It is a whole new ball game and they are in boom conditions in their industry. I think they are a good buy even though the heavey rights issue will put pressure on sharholders to find the money.

GPASAS