Tilleydog,I can’t understand the market’s logic as to the 10%...

Tilleydog,

I can’t understand the market’s logic as to the 10% price decrease today.
It would be completely understandable if the IPO had already been priced and was underwhelming, however at the current stages, there’s absolutely no indication as to how the US market will price the IPO. And whilst dilution has negative connotations, it absolutely isn’t always a bad thing…..

As vind mentioned, this is one of the times a Cap Raising was necessary and absolutely justified IMO. It allows the US market (I’m neglecting the SDCJF shares here) to get in on ‘our action’, and I completely believe that once the US market grabs a hold of SEA (whether that’s pre or post IPO), it’ll value it higher than what the ASX market values our company.

This company is building something special here, and I look forward to holding on to my SEA shares for quite a long time to come. I was liquidating my other holdings about a month ago (I was overweight in shares and underweight in cash), because I simply didn’t like having that much ‘commitment’ to the risks that the market brings (and the attached stress!), however I haven’t touched my SEA holding, I plan to keep these locked up for some time to come.

The financial position of SEA after this IPO (and any future Goliath sale) is going to be impeccable, and operationally speaking, the company has never looked better.

If you check out the AUT forum, and some of the posts AgentM has been putting up on the SEA forum, you can really start seeing how technology is improving the economics for Eagleford operators.

All IMO, as always.