RE: Casapino22 Dec 2018 10:35
Chilting, I agree about the sp reflecting a current snapshot of the sxx situation. The situation, includes possible dilution for additional capital, and this it seems to me, is fully priced in. Indeed all known risks are priced in, in proportion of their probabilities of happening. That the additional capital requirement was damaging to the sp in whatever form it is going to be raised, resulted in the sp falling to the current level. But it is flushed out now. Unless further bad news emerge, I think the current level is appropriate if not on the pessimistic side.
But I cannot deny that casapinos has demonstrated remarkable foresight with his 6th of August post.