new way forward, page-8

Interesting points Leveller.

Stocks that have fallen to only a few cents makes raising capital via equities a sure recipe for smashing existing share holders value. (Including all those vendors) That is, if they can raise funds at all.

For example if they supplied to the market a rights issue - given the secrecy surrounding previous significant expenditure decisions, the behaviour of some existing and previous board members, what kind of news would you need to take up such an offer - if at all? (Good money after bad)

Perhaps they have secret negotiations with an investor for a placement - what do you think the investor will be negotiating - a fair deal for the existing shareholders? Most unlikely.

Perhaps debt would be a better option given the cash flows are positive and that the cost of debt is relatively low. Either way the performance of this Coy. is culpable.

Maybe they will restructure the Coy. by reducing the number of shares available. Then raise capital at a discount to the market. Of course this strategy will smash existing shareholder value.

This Coy. is in a very week negotiating position - hanging on by their fingertips despite the good work many of their profitable businesses are doing.

It has been exposed many times over during this financial crisis that the board of directors are really there for their own selfish reasons. Is this Coy. any different? We can only hope.