SHAREHOLDERS DIVIDEDObviously we have two different classes of shareholders of Nordex. I would classify Abnormal and loosegoose as the privileged ones. Most likely they were "allowed" by the current management to buy significant stake through the private placement at a significant discount discount to the market (at 45 cents when Nordex was trading at 60 cents on the open market.). Obviously, they must like the current management because they were given risk free instant profit. If they bought the first private placement at 40 they coul sell them at 60 and reestablish their position at 45. Nice!
The problem is that this was done at the expense of existing shareholders who were not allowed to participate. And this is where the evidence of lack of integrity of the current board is clear.
If Nordex really needed the money the only fair way to do it would be through rights offering to existing shareholders. This is the standard operating procedure of "normal" boards. The intrinsic value of these right would be 15 cents at the time. Existing shareholders would exercise these rights if they so desired, or could sell the rights on the open market. Why this did not happen? Perhaps loosegoose or Abnormal can explain. The obvious reason is that the current board would be booted out in 2013 if they did not entrench themselves through this massive share issue. If the people who bought private placement at 45 cents tried to buy 10 million shares (all outstanding) on the open market they would have to pay something like 10 to $15 range.
The other class of the shareholders are long term supporters of the company that were cheated by exlusion from right offerings.