Companies owe the shareholder. If the face difficult time the astute one do not increase the debt. It would be short minded. Especially in the current situation. If you are a Rand hedge yes, you might be very successful at the very moment but as the tide turns again you got to be on the other side again. Not an easy game at the moment as the rules change very fast.
PSG Bookbuild
#1
Posted 10 December 2015 - 09:36 AM
“In order to know how good you are at something requires exactly the same skills as it does to be good at that thing in the first place”
#2
Posted 03 December 2015 - 12:47 PM
The Mouton's are very astute and smart...they know the share is overvalued at current levels...so more than happy to do a stealth rights issue at these levels. PSG must be one of the few...if not the only...investment holding company that trades at a 20% premium to NAV. I am just surprised the Mouton's didn't try and raise more capital at this lofty valuation. I know it is foolish to try and call the top in anything but I am pretty sure we have seen the top in this puppy for this cycle.Looks like they might even take R2,5bil instead of the initial R1,5bil, putting even more pressure on the stock.
I suppose what they do is legal, but is it fair to existing share holders?
#3
Posted 03 December 2015 - 10:10 AM
Not sure what the problem is - they will now have R1.5billion cash on hand for investments and your shares should be worth pretty much the same. It's not like they put the 1.5bill in their back pockets. Good time to do it in my opinion as they have proved they are pretty good at investing and that is why I own some of their shares. Why else would you own their shares?
#4
Posted 03 December 2015 - 09:17 AM
I suppose what they do is legal, but is it fair to existing share holders?
#5
Posted 03 December 2015 - 08:51 AM
No need to complain??You should be able to buy all the stock you want at 244 today, which is only marginally above the 240 level of bookbuild. So no need to complain.
The stock was R268 the day before this bookbuilding "surprice" so if your R244 is right this makes it a more or less 10% decline, that's what I (as a holder of the stock) reckon I can complain about.
Edited by BERT, 03 December 2015 - 08:53 AM.
#6
Posted 03 December 2015 - 07:59 AM
You should be able to buy all the stock you want at 244 today, which is only marginally above the 240 level of bookbuild. So no need to complain.Who can we complain to ?
#7
Posted 03 December 2015 - 07:33 AM
Who can we complain to ?
#8
Posted 02 December 2015 - 04:36 PM
This PSG bookbuild seems like a rights offer for selected share holders only!!
The rest of us need to swallow the dilution without any options.