I'm actually holding out hope that a lot of the bigger share holders take up the Rights Issue. There is only about 250K shares for sale Sub 10 now. There might be some more to come but I think its just about dry. So Im hoping Prime end up with around 30%. Not that I have a problem with Prime, they are good operators and by all accounts Warwick Syphers is highly regarded. Its just that I think DES is a likely candidate for a takeover in the future and a bit of competition wouldnt hurt. I think prime will sit for a while and continue to enjoy the synegies without having to take the lot. The settlement of the Magna property and the paying paying down of the debt should have a positive impact on the SP ( as in 4 million extra headed to the bottom line) but we will need to get past profit takers who scooped sub 10 and will sell into the teens. I dont expect too many that take up the rights issue to be selling too soon as faith in the company is a pre requisite to participation. Then, short of any announment, the full year figures could be the catalyst for another movement, by then DES would have stayed still long enough for analysts to get a better understanding of the business.
Oscar
DES Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
