Possibly a dumb question - if the record date is June 29th (Monday), then why is WDT trading "ex rights" on Direct Broking at the moment? Any ideas?
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Possibly a dumb question - if the record date is June 29th (Monday), then why is WDT trading "ex rights" on Direct Broking at the moment? Any ideas?
[QUOTE=Felonius;825015]Completely agree. Ross Green unfortunately wasn't the guy to make WDT successful. I thought he was and they would be a success. I learnt an expensive lesson.
Until recently there was no way in hell I would invest more money in WDT. But when last years rights issue came around I reread all the reports from Greg Allens time. I listened to all the online calls and concluded that the promises that had been made had been kept. The goals that had been set had been met. In most cases they had been exceeded and Greg was taking the company away from just making good motors to much much more. And the financials were suggesting the company did have a future.
So last year I took up my rights and even applied for extra. I didn't get most of what I requested because the uptake was far more than what was on offer.
Covid has really screwed things up, but I believe the people in charge are capable of navigating their way through it.
For that reason I will be taking up my rights.
Stiull think it's good long-term, but I do worry about their debt level. In a nirvana scenario, their business receovers more quickly than anticipated and they use the rights issue cash to pay down some debt. But appreciate this is all about "getting thru" right now.
Youch. This has been an expensive lesson for me, and I'm now in the mode of holding on because the paper loss is so big. Live and learn. Looking at the company's history and the chart should have been a warning - even if the fundementals could be explained in a positive light there is still the opportunity cost of having cash tied up in a perpetually unlucky company.
That said, I think that if the company can recover then it could be good buying at 8 cps (or dare I say, lower) but I'm beginning to mentally write this one off. I know, this is where a steady head needs to make a call to sell, but it can be difficult to crystalise losses and I can justify it in my head as replacing the cash I would have spent on TAB.
Spoke to someone who deals with these guys recently, didn't sound dire from them but yes North America is pretty much off the table for now, which is a large part of their sales. Does the volume pushing the price down suggest to anyone bad news that may be yet to be released?
On the slight positive side, the MC of 27 mill is a lot less than another company I won't name whose MC is around 80 mill yet I regard it as a worse performing company.
The IoT is a huge and growing sector. WDT are 'well positioned' if they can convert position into sales.
Medium-term I agree, but also there's plenty of other companies who are probably in better positions. Down 17% as we speak and not much on the buy side.
I get a bit concerned about insiders offloading when large moves like this occur with no news...
Disc. relunctant holder
Possibly against better judgement, I've participated in the rights offer. On the one hand I am concerned what a table showing the number of times they've put their hats out over the years would look like, but on the other hand I was impressed by the figures for the last year or so before COVID.
I'm new to these offers, but am I right in thinking the SP is generally expected to slip toward offer price (5 cps) in the short term after close date?
Yeah I feel the same, my worst performing share, at least participating in the offer will average my cost price down a bit. Hopefully they can get back on track the other side of Covid 19.
Not always..... if the cash raise has been well managed it can signal an increase in SP (as the company's equity situation has hopefully improved.)
AFT and VGL spring to mind as recent recent examples where those that participated have seen the SP increase since the raise. NTL is an example of badly managed equity raising over many years....JMHO. DYOR.
Did u guys go for some extra or just allocation?
I went for more too... You're crazy Left Field!
lol.....we're both crazy..... what could possibly go wrong!?
You're crazy Left Field!
I'm going to decide if/how many on Monday.
I'm 95% sure it will be a question of how many rather than if, but a few more days of inaction won't hurt.