Fair enough Wilson,My opinion is that 40% dilution creates alot...

Fair enough Wilson,

My opinion is that 40% dilution creates alot of overhang. The short-term price of the share increases as there is an increased demand for the stock to get in on the rights issue, but once released that increased demand reduces and sellers increase (as there is always a percentage of holders who are just after the stag profit ie traders). Then the equilibrium at some stage. but overhang can last for quite a while.

Saying all that I am surpised the stock rose over 2c, although the news thus far has been good, and the interest in the stock maybe indicates that some insiders have a fair idea of the flow rates being expected. Personallyt I cant understand why you are not able to announce expected flow rates, it just benefits the insiders, and doesnt give the average investor any way to make an accurate judgement.

Cheers