I spoke with the company on Friday. Equity raising is not a preference. Stock is being aggressively shorted and you can see even today when there is an announcement the shorters pile back in to any spike.
Important points to note:
Major shareholders who can potentially top up are Pictet and Kennedy Family only. The company is working hard to get new investors however in my view you'll see a takeover offer around $3.15 (breakeven price regal will tender their shares to any party). I think the shorters win this battle even with a takeover unless Norah does some sort of deal with a related party.
Perpetual whilst value investors are capped at 15% and can't increase according to their mandate limit.
Regal which is one of the stocks biggest advocates is unfortunately selling as well due to massive redemptions from their funds (double digit underperformance). This is however relatively small.
Expect an announcement hopefully next week.
EHE Price at posting:
$2.53 Sentiment: Buy Disclosure: Held
