is capital raising a bad thing?, page-8

Hi Khaliqs,
I'm not convinced that the $1.70 was ever likely to be a real bid.
It had so many outs for Cathay, that I wasn't surprised when the board knocked them back.
I had a valuation[including blue sky] of about $1.30 at that time, but using an 8% discount rate, I must admit.
I couldn't value it at the moment, just not enough info available.

With the CF, operational difficulties, debt default risk, drop in copper price, and the board losing some of the "halo effect" that they enjoyed, 70 to 90c seems a a tad optimistic.
Or at least, I wouldn't see it as lowball.

Here's hoping though, anything over 80c, would represent a pleasant surprise for me.


cheers

sentiment: will support a CF if it below the market price.