A cap raising is certainly a positive as it removes uncertainty, if it is pro rata.
In my view there is no doubt the industry will recover and in fact MRM looks to have adjusted it's business to survive a worst case scenario. The doubt and the difference with CDD, the reason I put 30% of my portfolio into CDD when it was at 50c staring at a chunky paper loss and hold no MRM is that the debt was negligible at CDD and it was making a small underlying profit.
MRM has neither of those benefits
Certainly tempted to buy but there's a risk MRM may not make it. That's enough to make even the boldest think twice.
MRM Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
