I have been reading a few posts recently about people saying why take up the rights offer when you may be able to buy on market at the same price or maybe even slighlty less! Now why would any shareholder obviously with a finacial interest in ORD make such comments? Obviously they dont understand how businesses work! Now why wouldnt you take up the rights issue to help the company you already have money tied up in to raise money so they will be able to use that money to move the company forward, just to save a few dollars. By buying on the market instead dose not help the company make your existing holding worth any more as the money you spend does not go to the company to help it add value to the share price. The only way ORD will be able to add REAL VALUE to the share price will be if the existing shareholders participate in the share placement. There not asking for money to go out to dinner is to help your exising mopney be worth more in the future. Now to those who want to save a few $ by buying on market instead just think about what i have wrote above, you will not be helping the company in anyway and will not be helping your own money grow that you have invested in the company.
It a bit like buying a house for $200,000 that needs a bit of TLC. In a years time lets say its worth $220,000 as is with no work done on it, but lets say you spent $10,000 on renovations to make it look better and you could get $250,000 with renovations done. What would you do? Would you invested an extra $10,000 to make $40,000 or leave it as it and make $20,000????? The point being you got to spend money to make money as the same goes for ORD and there share placement.
One more thing i admitt i am one of those who previously posted that we could well be between 7-10 cents by the time the shares are issued out, but i also said this may only happen if a few of the major annoucements were made before the shares were issued which by the looks of things wont be happening till after the shares are handed out, but who knows theres still time left but highly unlikely till after the shares are handed out. Having said that if anyone used my prediction of between 7-10 cents or anyone elses prediction for that matter, and bought shares on the back of this prediction then you really need to take a look and your trading staterges in stead of someones prediction of where the share price may stand as there are far to many influences on the share price that need to be factored in.
Good luck everyone and for all those long term holders like myself we know exactly where the SP is heading all in good time as there is no need to get all nerves about where the sp is at at the moment.
VAN Price at posting:
4.6¢ Sentiment: LT Buy Disclosure: Held
