Constant capital raisings are anathema to rising share prices

After three weeks absence, but not totally out of touch. This week I will selectively look at some of the news flow that warrants a mention. There is also a commentary on the capital raisings by junior companies.

The frequency with which the junior companies go into trading halts to undertake placements continues to be a serious obstacle for investors in the junior end. There is almost always the mandatory 10-20% discount, especially in tougher markets like we have been seeing, because this is needed to induce new money into the stock. The trouble is, the bigger the discount, the more aggressive the selling is when the halt is lifted. 

 WeeklyComm5August2023.pdf