It just occurred to me that the PRR SPP will be a great case...

It just occurred to me that the PRR SPP will be a great case study of the degree to which a rising share price changes investor preparedness to write out an additional cheque.

The interesting thing about this SPP is that it comes within 12 months of a previous SPP that attracted very little interest. Furthermore, anyone who did participate in the previous SPP cannot participate in this one.

Therefore, the only possible participants in this SPP are:

1. New shareholders from the last 6 months or so; and

2. Old shareholders who did not participate in the previous SPP.

Now - I reckon that most new shareholders rather than being PRR faithful are going to instead be savvy market types who don't take up the SPP as the market price has been lower for the last couple of weeks.

The most loyal of PRR's old shareholders will have already coughed up into the last SPP and now can't participate again.

Which means that the only participants will be old semi-loyal shareholders who think "what the heck, I am going to support this offering because it looks like Young Marty is going to pull this one out of the fire and he deserves my support for doing so."

I hope for the company's sake that a lot of people fall into this category. If they do, I think it will be an interesting precedent for a number of other small caps.