We need to understand that institutional investors think in a total different way than we do as retail investors. I believe that once MDT is relisted the first Institutional in the way out is going to be CBA since I dont believe there will be major interest from them in the future of MDT. Probably the same for Orbis since theyre after the capital growth in the mid term. The NAV with a 4:1 (which is more or less the ratio necessary to raise 200m) is going to be considerably affected but will remain way over the sp for a while, unless something out of this world happen in the US. As a retail investor I would analyse whether I want my hard earned cash into a stock which probably will not offer any growth within the next 2 or 3 years until asset revaluation affects the NAV which IMO wont happen before the mentioned period. I speculate the sp for the retail offer is going to be 5.5c but it is just my bet on the roulette. I wouldnt subscribe if I was entitled to it. Far from that, I believe there will be good trading opportunities when the stock relist watching instos going out. I wouldnt be surprised with an historic low of 3 or 4c and then reconstruction. Apples is right highlighting this has nothing to do with the maxi dilution made by BBI, that really was outrageous. This one looks to me more like the Elders situation. In the long run there will be some good chances but for now, and this is only my view, I wouldnt subscribe for the CR. Whatever you decide to do, good luck!
PS: Just for reference, Ive made these comments back on 12-04-10 under a thread for what is worth
