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5.00%

10.5¢ redbank copper limited

A consolidation wont dilute your holding mate. You and every...

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Nebuchadnezzar

327 Posts.

16

24/11/17

19:50

Post #: 29102570
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Originally posted by sullivd ↑

Yeah nice, it kicked a bit

I was watching it when it went up 33% , and then checked after you posted to see it had gone up 66%, and now back down again, but still 33% up. I just don’t understand buying now, given the consolidation that is coming. As a new shareholder , wouldn’t you wait until December ?

Would current shareholders with decent voting power buy more to stop the dilution to their votes?

Could anyone explain a few scenarios of the current situation with this stock and any pros and cons of buying now vs waiting? I’m still very much learning and would appreciate anyone’s thoughts on this.
Not looking for advice on buying. Just trying to learn a bit here from experienced posters.

I just figured if I bought now my holding would be diluted in no time due to the consolidation. Am I missing something really obvious here?

Any comments welcomed

Cheers

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A consolidation wont dilute your holding mate. You and every other shareholder will hold the exact same percentage of the company after the consolidation as you do pre consolidation. The dilution will come from the inevitable capital raising. This is inevitable because the company has just $2,000 cash left. This is when your percentage holding in the company will be reduced

RCP Price at posting: 0.4¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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