Tuesdays buyers could rightfully feel a bit 'used'. The article...

Tuesdays buyers could rightfully feel a bit 'used'. The article in the age was clearly fed to the journalist by either the CEO or by BBY with this capital raising in mind.

Prior to The Age article, the share price was languishing at 15-17c, and BBY may have been hesitant to fully underwrite the issue. With the price surge caused by The Age ramp, BBY are less exposed because they will now feel that there will be a significant take up of the offer.

It is noteworthy that directors are not taking up their full entitlements, but only a "majority" of their entitlements. A majority could mean as little as 51%.

If major deals really were imminent (as the age article clearly suggests), you would have thought the CEO would announce the deals first to the ASX and then conduct the capital raising. Instead, the company has been forced to deny that any deals are imminent to the ASX.

The extra cash is a positive, but it is hard to see this stock continuing its gains in the short term (at least without further newsflow).

No doubt some will be tempted to take profits on opening; they could probably buy back in closer to 20c in a few days and still be entitled to the rights issue.