Not necessarily. As Steve pointed out the decline matches pretty closely to the dilution, so I don't think there is any reason why the sp can't move up from here on any general rally in mining shares. Of course, if we go into a consolidation or retracement of the mining shares, then the sp could suffer along with the rest.
What does suck is that even on a rally from here it could take a while for this to get to new recovery highs, whereas the rest of the sector will be making them daily on any continuation of the rally.
I almost sold a 1/3 of my position just before the announcement, but had one of those "What if i sell right before good news" hesitations. Well, it was right before news, but....
Absolutely! Why was this not done as a rights offering? I'm afraid we all know the reason.
The disregard for shareholder value is amazing, and I'm not only talking RBY. I've seen a lot worse treatment in some of the other stocks I've been in, where very valuable projects were basically stolen from the shareholders and handed to hedge fund, bankster thugs. It's disgraceful.
I'll hold onto the RBY that I have now as it looks like most of the opportunity for abuse is over, and I might actually get out of this with a profit, if share price now follows the general pattern of a run up into production. A rising gold price will almost assure that at this point, I think.
Hey there Steve. It's been a long time. I think your analysis here is about right. Sure, it could drift a bit lower (or worse if there is a more general correction in gold mining stocks, but the main price adjustment based on the dilution has already been reckoned into the share price.
Another chance to accumulate as we move into a more favorable part of the life cycle of a mining stock.