Rights issues are more based on sentiment rather than fundamentals so when a share price tumbles towards the rights issue price it isn't because the company isn't a good company. It is purely based on sentiment.
Unfortunately the way that most people think is that if the rights issue is for that price then that is what the fully paid shares are worth now as well.
I personally don't think that the share price will hit $28 however the downward pressure is on because of the above.
why the big drop?, page-81
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$111.55 |
Change
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| Open | High | Low | Value | Volume |
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| No. | Vol. | Price($) |
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| 1 | 952 | $111.55 |
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