madness, page-3

Yes that's what happens . Blind Freddy can see that the rights are a screaming buy (at the moment)but once rights trading ceases - will there be a different market then & the benefit evaporates .You see they want you to come up with more money NOW .In the market place this puts pressure on the share to return to it's real value of 4 cents ( or even a bit lower -given the notional value of the option .See you might say that the real value of the share is higher because you paid more , but that's not what the company is saying ; they are saying there worth 4 cents in the market (given everything that's happened ) What we cannot know is who is supporting the stock now ( we will only see when rights trading ceases. Past experience shows volume & demand drops significantly after issue is out of the way . It's 101 of raising capital . if you can't see some advantage in it you won't do it - so at the moment you look like you'll be advantaged