at 10 cents, this too expensive for me, regardless of what ECM have
looking for a 5 cent entry thank you
imo, ECM has too many shares on issue to be able to raise capital for plant at 50 cents
imo, raising capital must be done at around 25 cents
example, ECM needs $200m to set up the plant & for studies
raise $100m by shares and borrow $100m
if shares are issued at 50 cents, each, there will be 840m shares on issue
divide by $58M annual net profit, EPS = 7 cents, share price = 70 cents, the return is poor on 50 cent investment, only 40%
if raise $100m at 25 cents, shares on issue = 1,0140m, EPS = 5.6 cents, share price = 56 cents, the return is good on 25 cent investment, that is, 124%
when ECM needs capital, brokers will force the issue price down (eg. PEN)
ECM Price at posting:
46.5¢ Sentiment: None Disclosure: Held
