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There are some directors or boards which keep doing capital...

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05/08/16

16:31

Post #: 18455946
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Originally posted by Warnie ↑

My point is find out why they are needing to raise capital and if that reason satisfies you and makes sense.
If it is to help increase revenue/ profit by buying an asset or to develop a product or drill a resource or payout debts on the balance sheet then it could be ok to buy.

If the company always seems to be doing a capital raising, and you can check this with their anns and history, yet income is not increasing or their results via mining or developing a drug/ product is not moving forward, then prob best to stay clear.

There are many variables, occasionally (cough) management reward holders with cheaper stock to sure up the books and reward you for holding, but that is a rare event.

Good luck with it.

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There are some directors or boards which keep doing capital raising and yet only apply the money to admin costs and their salaries.
There is nothing wrong with borrowing or capital raising, the problems are -- is it warranted and what is the money being used for ?
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