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23-11-2015, 01:23 PM
(This post was last modified: 23-11-2015, 01:25 PM by greengiraffe.)
(23-11-2015, 01:18 PM)Muser Wrote: Good idea to subscribe to the rights issue to avoid EPS dilution
- the business is a strong earnings engine, with low debt
- strong moat in funds & REIT management, with very few competitors
- strong management
- $1 per share is quit attractive given its earnings power
Whats bit unclear is why opt for a rights issue vs debt. Strong balance sheet provides good capacity to take on debt.
Why rights issue at such a low price?
Its a Fun mgr with a hard time trying to look for good value assets to manage to earn a fee...
Says who there is little competition simply because there is no listed competition?
Mgt - already diluted substantially for 2 years diverted attention - now has additional distraction to mgt own $... I think John quite lucky to have found S Trading to help him and Superman exit and now he is still a paid professional... win-lose for himself/superman and S Trading
Rights issue at such low price - got to convince S Trading that they still can get in for wrong term at lower price/book.... ie still remain hopeful for the tide to turn...
Kaypoh Buddy
GG