ABM Resources – ASX.ABU

One interesting opportunity came up on the radar this week, non renounceable issue 1:8 at 22 cents.

There is an opportunity here because the ex date isn’t until the 24th of Feb and there is an over subscription facility, meaning your 8 shares could go a long way.

The investment thesis in the stock looks reasonable but we have our doubts about who is driving the capital  raising agenda, given the announcement was a. Unexpected b. being used for a purpose that was previously state to be not required.

Pacific road can’t increase holding by buying on market without making a full takeover.

Something smells funny, so we will stay away from this one.

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