Possibly a dumb question - if the record date is June 29th (Monday), then why is WDT trading "ex rights" on Direct Broking at the moment? Any ideas?
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Possibly a dumb question - if the record date is June 29th (Monday), then why is WDT trading "ex rights" on Direct Broking at the moment? Any ideas?
[QUOTE=Felonius;825015]Completely agree. Ross Green unfortunately wasn't the guy to make WDT successful. I thought he was and they would be a success. I learnt an expensive lesson.
Until recently there was no way in hell I would invest more money in WDT. But when last years rights issue came around I reread all the reports from Greg Allens time. I listened to all the online calls and concluded that the promises that had been made had been kept. The goals that had been set had been met. In most cases they had been exceeded and Greg was taking the company away from just making good motors to much much more. And the financials were suggesting the company did have a future.
So last year I took up my rights and even applied for extra. I didn't get most of what I requested because the uptake was far more than what was on offer.
Covid has really screwed things up, but I believe the people in charge are capable of navigating their way through it.
For that reason I will be taking up my rights.
Stiull think it's good long-term, but I do worry about their debt level. In a nirvana scenario, their business receovers more quickly than anticipated and they use the rights issue cash to pay down some debt. But appreciate this is all about "getting thru" right now.
Youch. This has been an expensive lesson for me, and I'm now in the mode of holding on because the paper loss is so big. Live and learn. Looking at the company's history and the chart should have been a warning - even if the fundementals could be explained in a positive light there is still the opportunity cost of having cash tied up in a perpetually unlucky company.
That said, I think that if the company can recover then it could be good buying at 8 cps (or dare I say, lower) but I'm beginning to mentally write this one off. I know, this is where a steady head needs to make a call to sell, but it can be difficult to crystalise losses and I can justify it in my head as replacing the cash I would have spent on TAB.
Spoke to someone who deals with these guys recently, didn't sound dire from them but yes North America is pretty much off the table for now, which is a large part of their sales. Does the volume pushing the price down suggest to anyone bad news that may be yet to be released?
On the slight positive side, the MC of 27 mill is a lot less than another company I won't name whose MC is around 80 mill yet I regard it as a worse performing company.