...Mr Market is always unpredictable...however, there is other reason explaining why the share price is currently trading too low...
...for example, Peter bought 200,000 CDD shares @ $3.0 per share on 23/11/15 and Peter is entitled to buy 91,950 shares @ $1.0 per share...
...the problem is that Peter has no funds left for the Entitlement Offer...the only way Peter can buy those shares is to sell his shares to market (as long as the price is above $1.0 per share) and use the funds for new purchase...
...in order to have $91,950.00, Peter has to sell 61,300 shares @ $1.50 per share...
...so after the Entitlement Offer, Peter has 230,650 (200,000 - 61,300 + 91,950) shares instead of 200,000 shares...
...the Retail Entitlement Offer Settlement will be on Tuesday 22 December 2015, therefore, this sort of selling off will stop after that...and the share price will skyrocket again...imho...
...Mr Market is always unpredictable...however, there is other...
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