""(The insto's don't like to see the retail get something for a discount so they make the company pay by putting the share price under stress. PLV have a number of insto's on the registar so a rights issue would be very very risky indeed.)""
Columbia,
A small contradiction there my friend.
You said that PLV has a number of insto's on the registar, so, if that was the case how could that be risky when they will be getting their own entitelements on a proportional basis to their holdings, just the same as anyone else????
If the rights issue is done as it usually is at say 1 for 2, or 2 for 5, or whatever, they will not be disadvantaged at all. Besides, they could also pick up all the rights that will be offered on market by the retail investors that cannot afford to buy their entitlements.
Somehow you don't seem to like the idea of a rights issue. But it a matter of opinions. Yours against mine. I could buy as many as I want through a Broker if I want to during the placement, but I am thinking that it isn't fair for many who haven't got that facility available to them as well. I own quite a few shares in PLV, and if a rights issue was to be made to raise capital, I would go all out to buy all of my entitlement, but if an SPP was made, I may not go out on a limb to that much risk.
The argument that you put up against my idea, is very poor indeed. To say that the instos may get upset. So what!!!!
So, in your opinion it is okay to get the retail investors upset and shafted, as long as we don't upset the instos, lol.
You also wrote :The insto's don't like to see the retail get something for a discount so they make the company pay by putting the share price under stress.
That, columbia only happens when there has been an SPP put in place, where the instos can manipulate the sp below the offer price, hence why I referred you previously to the Central Petroleum SPP. Rights issue is a totally different cattle of fish and not to be compared in any way or form, with other Capital Raising issues.
As I previously wrote, go and have a look at what happen with NTU with their rights issue. Did the sp suffered as a result??? Even though someone tried hard to do it, it dind't. It didn't work and it nearly tripled, lol. And, most importantly, if you care to do some research, the moment that the rights issue date closed, the sp jumped like a released spring.
Why?? Because it can't be manipulated down by the big end of Town. And if they try to, it would cost them very dearly because of the big discounts that they are offered at.
As I suggested to you, go and research NTU. Once you have done that, please come back to these thread and tell us all.
Anyway, it is not our decision to make. Tony and the Board will decide what to do. If I had a say, or any say in the matter though, I know what I would recommend.
Buddy
PLV Price at posting:
59.4¢ Sentiment: LT Buy Disclosure: Held
