why did insto take such a small discount??, page-4

Joe, No... I read the ANN stating that the placement to instos does not include the dividend. I do not think they will be entitled to any dividend... They are not entitled to any dividends for a 6 month period from 31st Dec 09.

I read that they still will give 3c per share for the year until 30th June. Of which I gather the instos miss out on... As I read the ANN.

Furthermore I read that they wish to offer all eligible shareholders a SPP on similar terms to the instos were given in early 2010. Now who really knows what the price will be in early 2010 (30c to 60c- take your pick- IMO), so I do not see how they can say they will offer a similar deal. As the instos 40c deal, it will not be attractive if the SP is 40c. There will be no point.

If it is up at 45c+, great deal yet I cannot see it. Unless they did acquire a deal that will be a huge earner for us in the future. They made the point of stating that the current money they are getting is for acquistions and to pay down debt. As in my mind they get a better deal by offerring more shares (No interest to bank or debt) than trying to borrow when banks are obviously much more careful to lend. Plus they figure interest rates maybe skyrocketing over the next 2-3 years. So Management MUST feel that diluting the shares will be better than increasing debt, at this time.

I cannot work out whether they will offer a SPP on the basis of say 1 to 1 @ 40c or you may buy up to $15000 worth whether you have 1M of shares or 1 share. If it is the 1 for 1 or 1 for 3, etc offer I will be topping up what I just offloaded at 41.5c after the ANN. When my first reaction was that they just diluted my shares by 15% without giving a good enough reason for me to hold 10% of my portfolio in ABP.

Naturally an investor presentation should be given with the retail SPP. They still must be working out the details and as instructed will release it to us in early 2010.

Now I may need to reconsider my offloading decision yet will look for further ANN's. Yet I will not wish to miss out if they do in fact offer on a 1 to 1, 1 for 3, etc basis, yet we will not get this advice until early 2010.

As naturally this will result in further dilution of shares, and will greatly affect our EPS. Not making it look as attractive to value based investors.

The half yearly report in Feb 2010 will be very interesting.

Actually... I talked myself into topping back up to 60K if the price is right b4 XMAS. As I do not wish to miss out on a 1 to 1 or 1 to 3 offer, etc... yet I will be pi$$ed if it is not such an offer.

For the reason that many small caps are prone to capital raisings on the basis of up to say $15000 worth of shares at XYZ discount price. I actually have 1 share in a few dozen companies that I believe will need to raise capital, for that just in case moment. As i had been caught out too many times having a large shareholding then they offer the same deal to others with next to no shareholding.

It worked for me with Whitehaven coal and it was the best move I had done all year. Had 1 shares in the company and they offered up to $15000 of shares at a discounted price. Bought then sold for a good profit. Yet WHC keep going up so naturally no one can time their investments to perfection... Yet other than this win I have HATED companies who do this to their investors (Especially to me) in the past.

As they should REWARD shareholders by how much they own, not a fixed figure whether you have any number of shares. It is a system that i feel will be changed by ASX\ASIC in the future. It is not fair to larger holders.

I think most brokers use the same strategy of owning a very small interest in hundreds of companies for that just in case moment for profit.

Let us hope for a 1 for X SPP at a 15-20% discount would be nice. I do not think the INSTO got such a great deal, I suspect when negoitating the deal the price was around 45c at the time.

As you stated JOE the INSTOS would have asked for a 20% discount to current SP. Then been happy with 15%- IMO.

If they are receiving no dividends then the 40c placement to the insto was only a 5% discount. In fact Management negoitated quite good terms for the $91 Mil, now let us hope it will be put to good use for us shareholders.

In respect to the SP falling due to the ANN... I now have reconsidered and feel that they got a good deal for the 91 Mil. Therefore the SP should not really fall below 40c on that basis. If it does in the next week I will be accumulating to get back to same position.