Now look out for the stock consolidation. With 2.6bn on issue post the rights issue they will surely have no alternative. This will of course render the oppies worthless.
Until this company changes their strategy to be one in the interests of shareholders (which might happen one day) it is safe to value them at their ASX listing only, i.e. about $2m.
If you look back at recent issues to insiders (directors, etc) they were issued shares at $0.002c. With the current 1bn or so on issue they got their shares at this price.
A winning strategy would be to pay the same. Of course, with 2.6bn on issue this would be less than $0.001c, which is partly why a consolidation is necessary.
If they consolidate 1 for 5 they'll be back to 500m shares and $0.004 will be a safe price. Just be patient and get them at that price (post consolidation). Then wait, perhaps until this time next year. They will announce a "profit" and you can sell for $0.01c.
This one is for the patient investor, and you need to read the fine print.
cosmos
SCE
suntech environmental group limited
