Hi Defab,I agree with your comments in general - and posted a...

Hi Defab,

I agree with your comments in general - and posted a fair bit about it in this thread along the way

http://hotcopper.com.au/post_single.asp?fid=1&tid=744622&msgid=4094800
http://hotcopper.com.au/post_single.asp?fid=1&tid=780520&msgid=4337991
..and more - I just cant be bothered searching for them.

I wish that its bosses had grown a pair and not raised more capital. But they were so frightened and uncertain - like little rabbits - and remember - they didn't have a boss then - so it was very much the case of a company without leadership.

So, confusion, a need to do something in one area of the business (JV), a market that was in upheaval .. and no leadership. See how the rabbits ran :(

Im convinced that no bankers would have pulled the rug from under them.

Oh well. Hey have lots of equity now, I guess over time they will leverage it again, the idea being that they pick up distressed assets cheaply and over time increase EPS that way.

Incidentally - I have held stock since before cap raising - buying my first lot a $1.40 / share... I then doubled and doubled again, forking out 0.60 and 0.35c respectively, for an avg around 0.63 or so.

That takes the stock at today's price back to about $1.65 on the old scale, before diluting - which is better than when I bought it - and a better business too - as it has a much lessened debt - thereby giving it good prospects for future growth.

I believe the dilutions, whilst EPS -ve has ended up being enterprise value positive - the market cap of the company is greater today and it is arguably a less debt laden entity for the journey.