For some time you've been 'predicting' a CR and the negative connotations that go with this (despite the fact that any capital raising would be done to either build cash flow producing US plants, or possibly a silica smelter, or both - hence a big positive no matter how you look at it) yet all of a sudden you've bought some MHM - wait for it... becuase you think a CR is about to happen...?
******************* Firsova's post:
Personally I bought a very small holding on the expectation of a rights issue where you can buy up to $25000 maximum irrespective of your holding .
MY best guess at the price is 81 , ie 10% below the 90 they are trying to support ." *******************
Intersting investment reasons/methodolgy based on the above post.
Let's ignore the basic error that even if you have a small holding a rights issue will mean you get an even smaller portion (say 1 for 5?) and that you are probably talking about an SPP, and the max is $15k not $25k (for a SPP), and the dubious, unsubstantiated statement that MHM is 'supporting' 90c. Frank actually 'supported' $1.09 according to asx announcements.
I'm confident that whatever funding method the directors choose it will be very well supported from existing shareholders and/or a cornerstone investor.
For the record, I also supsect a CR at some point unless they pull a rabbit out of the hat. It really is a NON-ISSUE.
Good luck to all and make no mistake, this is still very much a speculative share with plenty of turbulent SP moments ahead.
Silica suddenly appears to be making some noise though! Bonus bonus bonus.
MHM Price at posting:
90.0¢ Sentiment: Buy Disclosure: Held
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