Yet another new issue by ITE. This time $2.4 mio, which will...

Yet another new issue by ITE. This time $2.4 mio, which will probably be issued at around 12c. Meaning another 20 mio shares on issue and diluting current shareholders interest by 10%.
Until they get the issue away they are borrowing funds from the underwriter at 12% - a whopping 6% above BBSW.
Now any company that was credit-worthy would not need to pay a margin of 6% for operating funds.
Note these funds are urgently needed just to cover operating expenses. If the company was so sure of their projected forward sales why are they so desperate for cash????????
Rights issue at 12c means the s.p. will crash to that level as well.
Todays price of 14c looks pretty good to get out at eh?? (oops, just checked the market depth and the entire bid side is not enough to cover one days normal volume - tells you something I reckon)
Then again you should have sold a month ago when you were warned ITE was over-valued.