Lonmin - What do people think

Drifter said:
I'm new to this. Please explain.
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Cash-strapped companies can turn to rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders a chance to buy new shares at a discount to the current trading price. Let's look at how rights issue work, and what they mean for all shareholders.

Read more: Understanding Rights Issues http://www.investopedia.com/articles/stocks/05/062905.asp#ixzz3sV1wzx4M

http://www.investopedia.com/articles/stocks/05/062905.asp
 
Put in a limit order at 26c, now to see whether it will get filled at that price. Life of the trade is 1 month
 
Drifter said:
I'm new to this. Please explain.
Click to expand...

I'm not really the one to explain it in great detail...but the basics of it is that people who had Lonmin shares (not bought now from an earlier date) have first option on the new shares being issues at a reduced price.

It's largely the reason that the price is as low as it is because it dropped -85% the moment the rights option news got confirmed.

http://www.bdlive.co.za/companies/2015/11/18/doubts-raised-over-lonmin-rights-issue
 
icyrus said:
We can't afford to lose those jobs, especially in one go but it is likely to end up being unavoidable.



Why would the Chinese jump in?
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If the Chinese arent interested, Im sure *insert any other country up the ANC's arse here* would be interested in buying.

Im speaking figuratively. In the case that things go really south, and a government bailout is impossible, I am sure buyers will be lining up!
 
People trying to cash in. My buy order is among those 13 okes who wants it at 26c :twisted:

lonn.JPG
 
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