Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:Like Diamonds - PGD is a story of survival and growth

[mill44]

Schocor, in 2014 Ekim did the math with the second rights offering. According to that PGD should have been trading at 30some cents after the rights were excercised. It traded down to 18c. That is dilution. Since then about 30M (almost half of the market value of the company) has been invested in the project, yet we are at the same market cap. And before we go down the same path again with the discussions, yes, the project improved significantly since then, but not the company. The SP reflects what the company is worth. We will see If in the future the SP will match the value of the project.
You say that anyone who got the 10c rights made a decent return. They did and that's the danger about the next rights offering. Few people want to jeopadize those returns, especially if they can do a rince and repeat thing. People who hung on to their 21c shares are less likely to sell because the project is good enough not to take a loss on it, but the bulk of the shares were issued at 10c. And that's the dilution Cudjo is talking about. That is going to hold the SP back for a while, diluting the price, even if it does not dilute the project and that affects the company's ability to do business.