I am going to hold on to mine and participate in the Rights Offer. To buy Abil shares at R8 must be a once a lifetime opportunity. It will also seriously reduce my input costs. The price will probably drop but I believe it is worth the risk.
Did you see the Bus day letter of Leon Kirkinis(sp?) - indicating that Bus day had been somewhat careless in their reporting of the rights offer and explaining same. There is of course the caveat that averaging down is to be at all times carefully considered and generally avoided?
Management has lost credibiliy in my opinion, and there has been significant loss of value over last 9 months. 9 months ago all was good and business was supposed to be growing. What happened ! I would personally put my money into a better run business with more sustainable business model. Their business model is very limiting and flawed for growth. It was an old fashioned sell poor quality furiture on credit and ripp off some unsuspecting client with a loan. You are now getting the results of this strategy coming through in the numbers. The poor guy with the loan aint gonna repay it easily...and as soon as one customer stops repaying, so may all his friends as well as they see how easy it is to default.