Transmil up is because they proposed to issue shares at 2.20 to settle the borrowings,part of which already overdue.
If the proposal is implemented,long term effect is that company will not be facing liquidity crunch.But earning will be diluted by the hughe amount of new shares issued.
Future earnings must keep pace with the increase in paid up to justify any increase in price.Do you think this will be the case?
This post has been edited by lklatmy: May 23 2008, 10:16 AM
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