EHL 1.25% 81.0¢ emeco holdings limited

How low can this go?, page-24

  1. 3,613 Posts.
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    Hi CP, I am not experienced but I shall say something and then let the weather beaten old hands answer.

    The way I see it. When an entity is in dire straits, a CR may be a necessity simply to ensure survival. The first priority has to be survival. The CR may appear to lock in a lower price- I think that is just a perception of existing holders coming to grips with the reality of their situation. The market then over reacts to the dilution- that brings in new investors- eventually the SP can rise again- and with a raising in their kick and some debts paid off- the coy is in a lot better place- and so are long term holders.

    I bought into this after the market reacted to the CR- and it kept falling. Now I am slightly in the money and looking ahead confidently. EHL will survive and eventually the market will need to acknowledge it.

    DYOR IMHO
 
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