The reason for the timing of the raise was to secure funding at the beginning of a world pandemic and recession the likes of which we have not seen in one hundred years since the Spanish flue.
all agree the world is now in its biggest recession since the Great Depression - that news is obvious and everywhere
in this pandemic we have been very lucky and touched relatively very lightly in this country - our death numbers should have at least an extra zero on them when compared to global infections and death rates
I don’t believe the raise was a great one given the timing of our news as Needle points out and with good reason - but let’s not forget the conditions of the time leading to such a radical decision
i for one do not believe it was a conspiracy to ‘onboard’ people at .40 or to gain a larger piece of the pie or to dilute older holders (which of course is exactly what happened to long term holders) - I see it as a conservative management looking to protect their asset from a pending period of world turmoil and the world is CB in turmoil - in New York they dug trenches to bury their dead in parks - the mobile freezes and morgues were full and deaths each day were piling up so they tagged them and put them in trenches... did we need to see dead in the streets to take this seriously here too?
don’t forget we had a liberal government who attack labour’s handling of the GFC turn on a money fountain and socially spending 130 billion in a few months - unheard of
you cannot already forget the conditions of a few - couple months back and as the US relaxes their fight watch what happens in their second wave of the virus...
we are not through this yet we have hundreds of active cases and are coping with that number well but also we are now only a few days into winter...
from what I’ve seen with our management over the last few years - it makes perfect sense they would protect the long term viability of the works on our assets over a short term bump in SP - they know the game is FDA approval and funding the path to that point and beyond - as that’s the pay day for patients and investors...
it would have been better to have a raise after a run in SP that’s a given - though they choose not to gamble with the raise and the company
given their nature of conservatism and history of decision making and language on good news events it’s completely on par
KZA Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
