Rights issue

[f4jsa]

Jinne, how is it that these "underwriters" sommer receive 14 000 000 shares for free?? Is Esor that hard-up for cash?? Does the little retail investor stand any chance to make money against these inside wheeler-and-dealers?? Or are we left with quick in and quick out for a small buck, before our money is also channelled to "institunional" money-grabbers??

[topgun]

Read the 11H26 SENS announcement - they paid 215cps.

[#3]

You still hanging on? Just remember this - ESR needs the capital to fund working capital, not to generate new growth. So the money you are pumping in will not generate any new ROE. Worse, it will result in share dilution, and you will be relying on ESR to return to its former glory - only this time you will be receiving proportionally less earnings, because of the extra stock. So the investment case is 1) that they can significantly exceed what they were earning in the past and 2) investors will be prepared to rerate them based on improved performance. If you back this then fine - just make sure that you are not one of those guys/girls that are pumping more money in, so that you can get out at breakeven on an upwards share price move - because that is trading, with a different strategy all together.

[f4jsa]

Ha-ha. They paid R2.15 while they can buy it on-market for R1.70. Please, does anyone pay more than asking price without there being some benefit. Next time you go to the shop to buy something, please insist on paying more than the ticket price!! You'll end up in a straight-jacket in a loony bin.

[topgun]

Well, they did receive a 1.9% underwriting fee for that risk...

[dbm]

Well the company got its money at 215. At the expense of the underwriters. Its got to be good value at 170 and that wont be around for long IMO