re: rtl a safe 100 percent return over 3 to 4 week...

re: rtl a safe 100 percent return over 3 to 4 week Risktrader,

Your or your broker’s prediction can be right.
The Reason in my opinion:

In the last share entitlement issue 26,176,365 shares
Were issued on the basis of 2 new shares for every 7
Shares held by existing shareholders @ $0.08/share.

1820 ordinary and long time (disgruntled) share
Holders taken only 3% = 785,290 new shares

(Where as these ordinary share holders were
Entitled for =17,213,657 new shares)

Calculations:
Total shares ----------------= 91,614,082
Minus top-20---------------= 31,366,281
Ordinary holders-----------= 60,247,801
(Ordinary Share Holders were entitled for
60,247,801x2÷7= 17,213,657 New Shares
(20 Large Share Holders were entitled for
31,366,281x2 ÷7= 8,961,794 New Shares

1820 ordinary & long time share holders taken
Only 3% of total entitlement ---= 785,290
20 largest share holders including directors
Taken 34% of total entitlement-=8,899,964
Carmichael (who were underwriter of this
Entitlement) taken 50% of shortfall = 8,245,555
Chairman (On Underwriting Conditional
Agreement) taken 50% of shortfall= 8,245,556

Total= 26,176, 365
Chairman received through personal
Entitlement issue 3,016,502x2÷7-----= 867,851
Chairman received through
Underwriter (50% of shortfall) ------= 8,245,556

Out of 26,176,365 Chairman received =9,113,407


Share price deliberately or otherwise kept at 8cents during entitlement issue period to discourage already depressed share holders to participate in the entitlement issue so the informed big fishes can take the maximum advantage of this low price. Even ordinary share holders average holding cost was more than 30 cents.

(This extra ordinary interest to snatch maximum shares indicate there is something)