The management team may well be good. So what. The management team at Woolies was good. Your paying for future growth now!! Nobody does that. Its a bubble and it will burst. It will take years of hard work to turn this around along with multiple placings along the way. They have proved to the world they dont give tuppence about you the investor so future placings will be at their benefit not yours. They have destroyed all credibility with this fiasco and fiasco it is.
They made it clear today that there will be more placings here. If anything like the last one (and we must assume it will be) then it will be done in a manner that lines the pockets of the privileged at the expense of the gullibile private investors. This is one to avoid forever and a day!!
Its not shrewd at all it is outright theft!! This is priced at future profits if any 3 years down the road. Everything is priced in for years to come. 8.75p would be any sensible persons sell price in 3 yrs time. This is worth 4.2p at best. It operates at the smallest end of the sector and it wont be a walk in the park. Right now you are paying to buy something that might not even happen over the next 3 yrs. Whether you like it or not it will drift back to the placing price. True value always will out in the end.
It can't possibly go to that level because of where people are invested.
Sure it will bobble about a bit consolidating here or moving gradually up from here which is what I expect. Like with all good shares going up but not in a straight line.
This share was ramped to this level in the first place. This is now the starting point. Or things being relative this is now the price per share and it makes no difference. Indeed get in now to be on the safe side and long term hold. A good old buy and build.
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