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Lorenzo - Rights Issue @ 11cents each

many thks for your advice.

HLJHLJ      ( Date: 17-Jun-2008 23:34) Posted: My sincere advice is to avoid all 2nd liners and small companies, or at least don't put too much into it.  I'm not sure if this is considered one. But in times like this, it is better to be careful. If condition worsens, only the big liners can survive, i believe. During SARs, financial crisis etc, we have seen it before. The 2nd liners were the worst hit and blue chips waned only, recovered in no time when condition turned.

 

My sincere advice is to avoid all 2nd liners and small companies, or at least don't put too much into it.  I'm not sure if this is considered one. But in times like this, it is better to be careful. If condition worsens, only the big liners can survive, i believe. During SARs, financial crisis etc, we have seen it before. The 2nd liners were the worst hit and blue chips waned only, recovered in no time when condition turned.

 

 

The price is moving south after the company announced their proposed Rights Issue at 11cents per rights share last week. Kim Eng also has downgraded to HOLD at target price of 24 cents due to equity dilution. What would be the good price to enter? Can it be <20cents?

Anyone can comments?