good news for holders

There shouldn't be any holders of SBM if you use a stop loss to trade but for others this may be good news.

from share cafe newsletter:

SBM - Deutsche Bank rates the stock as Buy
BROKER NEWS - 12/06/2008


The company unexpectedly announced it will raise extra funds through a 2 shares for 7 held entitlement offer. Deutsche Bank analysts have done the numbers and re-calculated the dilutionary effects (22%).

Because they still see production growth and capital upside, in combination with an attractive valuation, they simply maintain the Buy rating.

Forecasts have taken a massive dive: minus 37% for FY09, minus 22% for FY10 and minus 22% for FY11. Target price drops to $0.70 from $1.15, in line with the dilutionary effect on the broker's valuation for the stock. Sector: Materials.

Target price is $0.70. Current Price is $0.56. Difference: $0.14 - (brackets indicate current price is over target). If SBM meets the Deutsche Bank target it will return approximately 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).