Originally Posted by
MAC
If your shares had a share price yesterday at $0.012, then the 50% dilution today means they are worth by calculation $0.006c upon share issue, or, they are worth whatever the market deems they are worth following what is a de-risking event.
How well you do will depend on what the market perceives the value of NTL to be following this event, the SP is holding up very well following the announcement today at $0.010 so far, although few buyers seem to have fled.
Some caution is warranted though as it is a rights issue in the companies favor not necessarily directly in the investor's;
Compare this rights issue to that of CRP a couple of weeks ago, which IMHO, already had a much better risk/reward position than NTL;
NTL: A 50% dilution at a 38% price discount.
CRP: A 10% dilution at a 60% price discount