I have a small holding here and these are my thoughts. If the company is a sure turn-around story, it would be able to entice SI and fund managers to invest in it at a small discount to 20 cents and do a CR. So it is turning to us shareholders with a hugh discount and those who don't participate will get their shares diluted.
So I am not going to throw good money after bad management during this SPP now. I will wait for the company to turn-around (if it does) and buy in at a higher price than 6 cents. This turn-around will take time and my $$ can be used to work elsewhere until and if that happens.
Just my 2p worth. That is the risk with penny stocks.
Durian
NMS Price at posting:
8.4¢ Sentiment: None Disclosure: Held
