Just to add to my last post... The theoretical dilution of earnings is fairly small:
Initial SP = $1.70 (before announcement) No. Shares on issue = 298.94M Market Cap = $508.2M
Change in market Cap = $508.2M + $116.7M = $624.9M Additional Shares Issued at $1.39 = 84M (116.7/1.39) So Effective Share Price = 624.9 / 382.94 = $1.63
So its dilution effectively reduces SP by 7 cents... Not that all this theoretical stuff matters because SP is dependent on market conditions,etc...
But yeah in my opinion its interesting to see the effect. And if there is a dump in SP because of profit taking and there is good sentiment out there, to me its an indication to buy even more!
What you guys reckon?
AGO Price at posting:
$1.86 Sentiment: LT Buy Disclosure: Held