I am not saying it is great simply because it is dilution to the price at which one could have bought on market, although I must admit without it one could probably have been buying at under 95 the past couple of days.
I have however said it seems prudent and the right thing to do - apologies if I am not an exuberant ramper.
As for the last rights issue, as it was a pure rights issue and the left hand diluting the right the price of it was academic, so in my mind 55 cents has absolutely no relevance, and after failing at 110 was simply a level set by management as a no brainier decision for shareholders, who were required to fork out X amount no matter how it was done. Once it became a simple rights issue, and the amount sought decided it did not really matter to the vast majority of holders whether it was one for five at fifty five, or whether one for one at eleven. Same economic outcome for company, and for all but a tiny few holders.
EL
STB Price at posting:
99.0¢ Sentiment: LT Buy Disclosure: Held
