Originally Posted by
Snoopy
Last week, on this thread (and in more detail on the Turners bond thread), I raised the issue of Turners looking very stretched from a leverage point of view. Yet this message didn't resonate on this thread, with other shareholders focussed with relentless positivism that future growth will bring. New shares to be issued means that future 'eps' will decline, and the value of existing shares will be eroded. Those that piled in during the latest significant shareholder sell down at the 'bargain' (sic) price of $3.40 will be tending their subsequent market lashings. All I can say is, I tried to warn you. I have previously suggested that those holding the bonds over the shares might be end up being the smart ones. Below is a quote from me in June:
Having said this my own shareholding in TRA is relatively modest, and I do hold a few bonds. I am right behind TRA strengthening their capital base and may look to increase my holding when the smoke from the capital raising clears. I won't be paying $3.40 a share though.
SNOOPY