@stockrock,
When I read that post of yours, I had a bit of a light bulb moment.
You are 100% correct and my thinking on this has been a bit intransigent and idealistic.
Arguing like you have, has caused me to change my mind about a view I have defaulted to for a long time. Entitlement offers might not be at all suitable for MSB, after all.
Because what you have done, in that case, is highlighted the invidious situation in which MSB finds itself.
Effectively when you say,
"But for a company that is not worth their salt ... would you be confident it would hold its TERP for a few weeks? And would an underwriter take on such a risk? How practical is it for Mesoblast to go down this path, especially after having tapped holders for $1.40 a few months go?"
and
"As a shareholder I believe a fully renounceable rights issue would have been a mistake and would have sent the share price straight down to TERP and having people open their wallets again to increase their stake and the volatility of global markets would have seen the share price trading below TERP a very real possibility. I dare you to say it wouldn't in MSB's case."
...what you are really doing is offering an explanation why the company's management are so reluctant to go down the entitlement offer route.
Because it is not likely to be very successful, to the extent that the underwriters and the sub-underwriters are likely to end up with the bulk of the stock.
So that got me thinking, "Well, maybe I'm being too harsh. Maybe they had little alternative to go the debt route
[*] . By gum, I think
@stockrock is right."
So, all respect to you.
You are one of the very few MSB enthusiasts who I find can think rationally and engage in debate based on either fact, or considered logic.
Salut!
(PS. Are you sure you aren't also a shareholder in companies such as ARB, ASX, AUB, BRG, CSL, DLX, LYL, MND, NHF, REH, RHC, TCL? I come across your brand of intellectual rigour a lot on the threads of those sorts of businesses.)
[*] Of course, one of the implications to arise from that conclusion is that equity capital markets are busy closing to MSB. But that's a discussion for another time.
