Yes, I considered the risk of a cap raising before buying more. As at last quarter they had ~10.9m left.
If they do a rights issue at this price I think they will upset the recipients of those last-minute-underwritten 50c (was it?) options that were converted last year.
The top20 holds 72.77% of the issue as per last annual report. As long as none of them become sellers, it should be reasonably easy to push the SP up prior to any further capital requirements.
Maybe keep a weather eye on the SP for signs of a push to get the SP north. I thought that was starting with those bids over a week ago, but it fizzled out quickly.
Of course with the results that TGS has had over the past few years, there might also be interest for a JV, merger or T/O from a larger player with a view to what the Cu market is going to be like in a couple of years time.
TGS Price at posting:
11.0¢ Sentiment: None Disclosure: Held
