On the 07/05/07 CIG raised $9.275 millon, obstensibly to buy the drill rig for $3.5 million? On the 10/03/08 CIG raised a further $6 million.? On the 31/07/08 CIGs equity in PRU was valued @$27.5 million. At the time of the 2008 annual report CIG owned 14.132 % in PRU valued @$22.2 million. After the intial PRU share price drop from$1.12 to .90 cents,why did they hang on.? At the 2009 annual report CIG had sold $8.943 million ,with a remaining value of $2.746 unrealised. A 60% loss on original investment. Hindsight is a wonderfull thing but, why was management doing CR to buy into PRU. To whose advantage was it,it was a strategic stake in PRU. If investment was the way to go ,why wasnt there diversification,outside of the group. What did the accountants and the auditors think of the "allin "approach to investing.? The GFC should not have impacted as heavily as it did on CIG,if prudent risk management had been taken. Will they take collective resposibility and do the right thing?
CIG Price at posting:
10.0¢ Sentiment: None Disclosure: Held