04-12-2011, 11:28 AM
(04-12-2011, 11:07 AM)egghead Wrote: I suppose if you read the entire article, you will find your answers.
Read "...I reckoned that this happened because the appreciation of Ascott's share price has not been as steep since its latest round of cash call last year. And also, very importantly, Ascott's rights issues weren't that dilutive in that the exercise price of its rights was only a slight discount to the then market price of its units."
It could also be interpreted as "Ascotts never recovers as much as the rest", which makes Ascotts Reit a worse investment choice, rather than a proof that it is better off not subscribing to the right issue.