Ann: SHARE PLACEMENT, page-27

First 27 Last

Share
Profile

Follow
raywang5

1,278 Posts.

3

25/09/15

12:31

Post #: 16060058
Share

Originally posted by forrestfield ↑

You know all very valid points and years ago I was of the same opinion... I am however no longer support this argument... reasons:
1. Capital raised through shareholders takes weeks and weeks...
2. Share price never moves as market remains aware of ongoing capital raise... I consider it as an issue while buying any stock doing a raising.
3. Retails shareholders do a lot of calculations... and even making a 2% gain becomes their priority... hence selling continues by them to grab any premiums which ultimately kills the share price.
4. This whole saga leaves takes the share price either to the issue price or below it.
5. Lower share price raises the concern hence holders don't participate thinking they can buy the heads cheaper or at the similar price from the market so they don't participate.
6. This leaves capital raising non - complete hence requires short fall.
7. Short fall takes time and only being done followed by announcement or a pump... the issue of short fall straight away gets dumped hence hurts the stock reputation...

So all in all, raising through Sophisticated investors is quite often less time consuming and cost effective. Also once the newly issued shares are soaked, stock is free to run. Also raising price puts a strong floor under the share price which acts as a strong support. And most importantly, if wpi might be able to secure a deal soon enough, capital raise is not a hanging concern just like VTX...

This is just the general observation and might not apply to all stocks...
cheers

Expand

u mind i ask you how you find MW holding this shell? is there any formula to find stock like this?? u seems always ahead of the market.

WPI Price at posting: 2.7¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ASX Market Close: ASX closes above 8,400pts on green Wednesday | Nov 27, 2024

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 34 more messages in this thread...

First 27 Last

Add WPI (ASX) to my watchlist

Ann: SHARE PLACEMENT, page-27

Top Stories

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ASX Market Close: ASX closes above 8,400pts on green Wednesday | Nov 27, 2024

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025