RCU 0.00% 4.3¢ real estate capital partners usa property trust

shortfall offer closed

  1. 453 Posts.
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    I note announcement re close of shortfall offer and Frost emerged with 28.9% of RCU. I like it in many ways;
    1. Frost has paid $8.5m for some 18.9m shares. Thus he now has an average cost of 63.8cents per unit. Suitably higher than my 40 cents entry price (when he gets this to his breakeven I will have enjoyed a 60% return), and he has 18.5 million reasons ($) to make this work.
    2. Despite all the noise re the rights issue, bad performance etc etc and shareholders protesting, the take up was very good at 82%.
    3. Putting the manner in which rights issue underwriting was done to one side, I think the motives of Frost are no different to the instos ( Intelligent Investor and others alike) and that Frost will promote changes to management. Lets face it he paid $1 for his earlier purchases, do you think he will feel any differently re management?
    4. Now that the issue is done, the 40 cent shares gone, prospective investors need to buy on market and we are starting to see some positive price movement. Note there was a large buyer in last couple of days, but no real selling in sight.
    5. I sense the AUD weakness going to start pumping our RCU NTA tyres.

    good luck to all
 
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