jamwolf,"Every time this company raises money, it seems to have...

jamwolf,

"Every time this company raises money, it seems to have a compulsive need to do it at prices higher than market.

Constantly trying to prove the market wrong is a mugs game, in my opinion"


Any idiot on any board can go to market offering to issue new stock at a 20% discount to the current market price thus providing a kick in the balls to those everyday punters who recently purchased on-market. Its easy to do and requires absolutely no skill whatsoever. Better still you can use your old mate in broker firm xxx to unload the underpriced stock knowing full well that he / she will reciprocate at some later date for the favour you have done them.

Offering steep discounts is common because its easy and lazy boards on massive packages have little to lose personally from doing so. Its the shareholders (ie owners of the company) who lose out.

There are no shortage of seemingly genuinely bizzaar behaviours of CDU worthy of comment, but the mere fact that they are willing to work their collective arses off to maximise the price attained during capital raising surely isn't one of them.

The fact is on multiple occassions that CDU has gone to market seeking to raise additional funds they have not only asked for a premium but that have often got it. How on earth can your criticise that?

Sure some people may prefer a nice clear announcement like you get form many companies srtating that they have placed xxxx million shares via broker yyy at a 20% discount and that its all a done deal, and those that are happy to have others issued stock at considerably lower than you yourself can buy it, well there are hundreds of companies out there for you. CDU isn't one of them.

I'm not defneding everything they do but criticising their attempts to protect the value of existing investments is surely even more bizzaar then some of the things this company is accused of.