GREY:NEVDQ - Post by User
Comment by
JoeStockIQon Nov 11, 2021 1:45pm
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Post# 34115953
RE:Discount to market intellectually challenged.
RE:Discount to market intellectually challenged.KentWilkens wrote:
maximum legal discount to market is 20%. When they discount to market they gut the share price by 20% immediately, gut the existing shareholders, and it usually takes months to recover, if not years. By doing so they get zero discount, none in reality, since the share price immediately drops to the new issue price, or lower. They undermine existing retail traders, which further undermines the share price. If the new shares were marketed at the current price, the price would hold. Discount to market means the new shareholders do not think it is worth market value. Happens every time. KW
Ah, cheer up Kent. Everything worked out just fine for Taseko immediately after their private placement debacle for shareholders. It actually recovered and continued to move higher rather quickly. So who knows, maybe this works out for you as well. Chin up buttercup.