Rachops
:
Rights issue will bring down the cost. But because it might reflect that the company isn't doing well...so the current dip is prob due to 2 factors...stocks dilution and visa increase number of shares and investors pulling out because lack of confidence. To buy after rights issue or not is mostly up to your confidence in the company's future.
Joshtjh : Rights Issue usually Lowers the stock price, as to how long. Not sure. Do correct me if My Fundamental knowledge is wrong :)
Rachops : Rights issue will bring down the cost. But because it might reflect that the company isn't doing well...so the current dip is prob due to 2 factors...stocks dilution and visa increase number of shares and investors pulling out because lack of confidence. To buy after rights issue or not is mostly up to your confidence in the company's future.