The VWAP at the time was only just over $1.60, as it raced up to $2.20 on light volume immediately after the Halt, compared to the previous few days, according to Jon Stewart. It as trading at around $1.60 - $1.70 just prior to the halt.
You make a very valid point, and yes shareholders should consider voting no. It wont get up, but it will send a clear message that we want more appropriately priced CR's.
Managment needs to take into account sp growth after the announcment .
A little bragging new article for you AUT holders out there and a double for the SEA holders too...
http://www.theaustralian.com.au/bus...d-losers-of-2010/story-e6frg9lo-1225978663161
Nothing we didn't already know, but the more we see AUT (and SEA) in the news the better for us.... especially when they are getting good wraps.
The 2 tranche raising was announced on 15 December and AUT had been flat-lining at about 180c since the announcement of the land acquisition on 10 December. The institutions will have committed before the 10 December although the price might have been fixed later by formula. The max discount was about 20c: that is, 12.5%. We've seen it move that far over the xmas period. The instis are on risk until 25 Jan. They committed 6 - 7 weeks before they would have the shares to trade. Consider - would you commit your cash on that basis before seeing the market reaction to the deal that period of time before you would have the shares to trade for less than a 12.5% discount? How would you feel if you were pushed into a lower discount and the shares were trading at less than your subscription price before you had a chance to sell? Would you support any future raising if that is the case?I just received Aut General Meeting paperwork with Proxy Form. I'm only a newbie so forgive my ignorance but I can not understand why managment decided on such excessively discounted price ($1.60) when the price at the time this was decided was already close to $2.20.
Why would shareholders vote further in support of such excessive discount to parties that will make unreasonable profits by immediately dumping without having shouldered any risk whatsoever.
I for one do not feel inclined to support this.
If shareholders don't support would managment come up with more appropriate pricing?
Any thoughts?
Haha Nice one Condog. Id like to know his new valuation now..
what was the Euroz valuation again?
what was the Euroz valuation again?
From memory it was around $3.40
hahhah yeh out smarting the smarties. Some times the smarties arent as smart as you think.
Theres been plenty of so called smart people have made very bad calls on AUT. Fact is it proved them all wrong, and its set to do it all over again, for those saying get out now.
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