Sushi and others you are totally correct in your feelings on the cap raising. Under the circumstances it was little more than risk free money given away to a select group while the ordinary investor misses out. Sadly this is how the business works.
The cap raising in early 2009 was in the teeth of the GFC. Many long termers like myself had taken up a recent rights issue at around 30 cents and been horribly burned. The sophisticated investors would not have touched it with a 10 ft barge pole either.
To see the project perform so well and then get de-risked in a rising oil price environment - and then have a selective share placement you cant help but feeling a bit cheated. I have no doubt everyone would have supported a cap raising at that price.
Truth is the typical attitude is to look at small investors as cows to be milked and fed when appropriate. After their money is taken they are little more than a nuisance, endlessly bombarding the company with questions, complaints and enquiries - tying up valuable resources and getting in the way of the real work.
Take your rose colored glasses off. Just because the project is looking promising is no excuse for disadvantaging regular investors and the practice should be challenged and condemned every time it occurs.
ADI Price at posting:
28.0¢ Sentiment: Hold Disclosure: Held
