capitol raising, page-2

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