Yes, they are probably investing in another mine..
Going to be an expensive one seeing how $50m in cash won't cover it.
I'll probably hold till the end of march either way.
LOL at all the above comments! Good things on the horizon in my opinion and I bet a good acquisition will be occurring in the near future.
Read the announcement - it's a capital raising.
So presumably shares will get diluted. Not a good thing (at least until said capital amounts to discoveries of more gold...).
I'm no expert though, I'd like to hear others' thoughts and am wondering why nobody else has mentioned this.
I thought this company was swimming in profits. No debts... now it needs more money??!!
WIll have to see price action on tuesday i guess
Capital raising often leads to short term weakness due to:
1. Dilution as you've mentioned above
2. New shares usually issued at discount to current price, and
3. Expectation of market that price will move back towards issue price, and that stock will be able to be picked up cheaper than current levels.
These factors often put brakes on share price short-med term while new shares are issued and absorbed by market.
Exceptions to above can occur if company can get an issue away very close to (or even at premium to) current share price, or can convince market that funds raised will be utilised in way that will have an immediate & significant boost to company's prospects.
You'll just have to wait and see the terms of the raising when announced next week.
It's quite common for spec companies such as these to take advantage of any quick share price appreciation to raise a chunk of new $$$. Indeed, the cynics amongst us would suggest that in many cases price run-ups prior to cap raising announcements are manipulated to ensure the co. can get the best price possible for the raising
By the way, these are just general comments and not directed at NST in particular. I don't hold - just watching at present.
Thanks papatee.. very informative post.
Ill be selling at open.
So shares slightly diluted @ 98c... but they are trying to offset this by the ann today.
Will be interesting to see what happens.
Ouch.. -10%... need to hope for some late insto buying in the arvo...
Oh well... stuck long on this one
My stop got jumped this morning. Bit of a crazy opening. I decided to hold and see what happens towards this afternoon. I think investors will buy up all the stock that is selling cheap later this arvo. Seems to be coming back up a little. See what comes of it.
So will they offer their retail share holders anything?
Hi guys. My question is why do they have to have a trading halt for a cap raising, unless they want to specify on WHAT they want the raising for. Maybe for an acquisition. Not sure.
Cheers Moit.
And Gringotts, you like my avatar do you. That's me all over mate, lol.
Exceptions to above can occur if company can get an issue away very close to (or even at premium to) current share price, or can convince market that funds raised will be utilised in way that will have an immediate & significant boost to company's prospects.
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