we are talking about market pshycology here, not the value of...

we are talking about market pshycology here, not the value of ipl.

Those who have been in this market long enough, know stocks get sold down to the issue price, fair or unfair. It just happens, so those who know sell first. Usually they dont even take up their entitlments, why bother? You can buy off the market for the issue price.

The instos always support it, they see the big picture, and know that 2.50 will be the floor for a better future.

IMO, the best rights issue, would be one at no dicount to the market, but offer a new share at current level, plus say two free options to go with, that way, you are adding value to the current share price, not discounting.

People would still particupate to get the free oppies worth money already.

Why cant coys get it into their heads, that rights discount means share price retraction, and very dangerous in this market, where fundementals dont necessarily put you back where you were before the issue.

IPL fine for a long hold, but also good for a cfd short for this issue IMO.

Long perspective would wait for the 2.50 level before thinking of new long pos.

cheers