Over the last 3 months UE lost about 10% in market value and tomorrow this stock is gonna tank!!!
1 for 1 rights issue at $1.50, with the last close at $2.81 ! That’s like close to half price!!!
Given the recent poor market sentiments my gut feel is that UE might open tomorrow morning with a crash towards the $2.00 level.
Investors who had bought this stock thinking it was a value play with $5-6 of assets will feel the pain tomorrow, especially with the recent market correction cash now becomes a very useful holding to purchase down beaten blue chips. I bet the last thing investors would wanna do with their cash is to put it into some stupid rights issue to fund some over priced purchase.
The management has been overly aggressive with their recent WBL acquisition and I strongly believe their actions have …