Heey Thanks for your contribution i share the same view In relation to CAP with regard to funding !
Interesting that a institutional invester SG Hiscock now holds 7 percent of CAP.
It’s always a positive sign when a professional investor stumps up with the cash instead of just lip service.
Let’s assume that SG Hiscock continues to be a buyer this should provide support for CAP at current levels.
CAP does provide a gunuine opportunity for investors that are looking for a leveraged iron ore play. If CAP can rise in price to just say 20 cents a share this would translate or equate to a market capitalisation of 40 M.for CAP. CAP would not have to do much more to justify a 40 m valuation and a 1 for 1 rights issue underwritten by SG Hiscock and Co may provide much required funding provided of course management can deliver.
Prior to acquiring a major stake this cornerstone investor would have met with management.
Therefore, there is by assumption a definite positive achievable plan in place otherwise why would SG Hiscock invest ?
My view is that we are more likely to see CAP trade at 20 cents before it trades at 7 cents again.
CAP Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
