proposed cap raising, page-17

Thanks Sammy and PPUP, now have a look at my figures and then we can all thank the board for a wonderful shafting.

I have 600,000 shares that were about to pay me 9.2 cents each in FY12 making an 11.1% yield on current price and a $52,000 dividend thank you.

Now I have to stump up $135,000 so they can reduce the dividend to 8.8 cents and slam 20% off the NTA value all in one move. They tout that they will get 0.01% off the interest loan, but the saving is not making it to the bottom line, hence the drop in dividend. They claim the company will be better positioned..... it has a WALE of 12 years and hedged funding for 3 years for Gods sake!

But continuing my maths:

I will get 12.7% on my new shares but a reduced figure on my original shares, so after coughing up 135K I now receive 10.8% on my investment overall, not 11.1%.

With the shares trading at generally 85 cents before on an 11.1% yield and a NTA of $1-36, a similar yield now puts the share price at just on 80 cents. Take away the 2.15 cent dividend drop in a few days time and you are close to the new listing figure. Perhaps market will suddenly develop a love for this stock with its 41% debt and 30% more shares on offer and the uncertainty of now knowing what these punters at Austock are going to pull next month, but I for one feel a bit bruised about this unnecessary act of vandalism. I want a closer to NTA the same as any investor, but not doing it by diluting the stock!