deserves a kick

What I don't understand, is people who vote for a rights issue, yet decide not to take up their rights. It is horribly confusing.

Lets get in the investors mind here shall we. "Yes, the rights issue is a great idea. Lets vote YES for it."

Now, the share price is below the offer price. I shall not buy now, as the rights issue may not do well, but if I wanted to buy, then I could do so cheaper through an on-market purchase.

So when the share price rises above $1.35, suddenly the rights issue looks great right? But when the rights issue closes tomorrow (or for all intensive purposes almost today if you are B-PAYING) you won't be able to buy.

Instead, you will have to sit there and watch as the company you voted yes to for the rights issue is wrested away from your precious hands as the sub-underwriters snatch up your rights.

Why do they do this? Because they dont have to buy on market because they are too big, and they have been handed a gift by you to dillute you out of your company by 50% because you wanted them to do it by your complicit actions.

So why does this scenario suit you if you voted for it? Maybe I sound a little more frustrated than I really am. Perhaps I am just tickled pink at the oppportunity to more than double my holdings. Perhaps I should be saying thankyou?

Got some more left in the tank for the March 'weather' discussion.

SF