Originally Posted by
Maxtrade
Quite astounding the resilience of the current market depth with Cap Raise being more than double what was expected. Whats an extra Billion between friends right ;) Surely even retail folk can see what this size Cap Raise means. The resulting dilution of shareholders value. In one way forcing them to inject more capital at an offer to buy 2 shares for each share you currently own at a 'discounted Cap Raise offer' to try to make it look attractive. ie Cost averaging down as the share price will need to be low enough to be attractive to get funds through the cap raise. With no dividends in sight. Years away from breaking even let alone become profitable. Shareholders can expect to see previous low end trough of 0.70-0.80 tested for sure. Will be surprised if there is not a massive sell down ahead of Cap Raise. As post this massive unprecedented (in NZ) cap raise there will not likely be any reason for share price to rally, so those looking for a quick buck off buying in at cap raise offer and selling to make 10-20% won't be interested as likely will at best see SP plateau at Cap Raise price, or slowly decline, as most Cap Raise offers have seen in recent times. As many of us were suggesting on this thread for a long time, blood batch to share holders in the water. Surprised with so much pre warning there wasn't already a mass exodus. Those hat live in hope I guess. But no body expected the raise to be this big. Most analysts are recommending their fund managers downgrade and sell off / reduce current portfolio exposure. Will be interesting to see where Cap Raise price is set and how long support remains in market depth until everyone understands the reality of this 2 Billion dollar 'fund raising campaign' (to pay debt!) that has just been announced.