getting close to some big news now? good price, page-26

Doods & SDL HC,

I am back again and would like to post this question.

I totally agree and It is important that SDL SP maintains a good market cap. before any announcement of capital raising. This is like a chicken and egg situation. Would you as a cornerstone investor invests on a share that you know will be diluted, on capital raising ? Are most capital raising dilutive ? Why pay a price of a cake now if you can you can only get half ?

As the share price are at near 30 cents support level, will it be possible that we main need to maintain at least a $1.4 billion market cap to be able to raise enough capital, thus giving it an average price of 50 cents per share.

If the share price cannot reach 50 cps then, the load on borrowing will significantly increase and thus pushing SDL debt/equity ratio really high.

As the announcement of JV does not mean that the whole finance project is a sure go, what we hope is that there will be an increase in the share price towards this level (50 cents) and when capital raising is due (baring any macroeconomic disaster) so that the VWMA (VOLUME WEIGHTED MOVING AVERAGE) is calculated, then other institution will have more confidence in joining in.

At the moment, at 35 cents per share, the risk is still there and when the dust settles (financing), then the big boys will join the party.

Look forward for your opinion and analysis on stock prices effect on derisking when finances are sorted out.

superOX