John,
A captial raising is good normally on a couple of grounds. It secures the cash a company needs to go forward; the contrary of that is a company's SP is marked down when they are perceived to be thin on cash.
If the raising is at a high number, that proves that investors strongly believe in the company and are willing to bid up close to the recent VWAP. Normally a discount of 10 - 20% from recent VWAP is expected. Occassionaly, like Sims Metal, you get away with something close to the SP, but it doesn't happen often.
If the capital raising is over-subscribed then that is a strong positive. It shows excellent interest in the stock and leaves those with a short-fall needing to top up on market which is what you want.
You sometimes find, like BCC, that the SP gravitates down to the raising price for a short period, but it doesn't always happen.
In regards to QHL, I would suspect that a number of 50c or more for the "potential fundraising" they talk about would be a very strong tick for Quickstep. Worst case would be around 44 to 45c.
Once the shares are issued, there may be a few who sell on market, but nowadays brokers tend to give stock to instos and sophisticated investors they know will hold for a while and not dump.
Hope this helps.
CD
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Last
29.5¢ |
Change
0.005(1.72%) |
Mkt cap ! $21.15M |
Open | High | Low | Value | Volume |
30.0¢ | 30.0¢ | 29.5¢ | $5.487K | 18.32K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 3562 | 29.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
33.5¢ | 3336 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 3562 | 0.295 |
2 | 30000 | 0.270 |
3 | 35474 | 0.265 |
5 | 83049 | 0.260 |
2 | 63500 | 0.250 |
Price($) | Vol. | No. |
---|---|---|
0.335 | 3336 | 1 |
0.340 | 17750 | 1 |
0.350 | 13076 | 2 |
0.355 | 10000 | 1 |
0.360 | 37292 | 3 |
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