Speedy PLC – Rights Issue
Speedy Hire… where do we begin…
Back at the start of the years the shares were around 30pence but then rocketed up to over £2.50! per share until recently.
Speedy are wanting to issue more shares in a rights issue to try and get some more investment… confusing or what…
Well this will mean existing share holders will be given the choice of buying more shares in the company at a lower discounted price to market price. If shareholders decide not to take up this they will find that their existing shares will be diluted.
The rights issue has gone ahead and the exisiting shares price have fallen over 74% (89 pence) – for an update of the current share price see google finance: http://www.google.co.uk/finance?client=ob&q=LON:SDY
More information on what a rights issue is: http://moneyterms.co.uk/rights-issue/
The rights issue can be seen as being a way for a company to make it’s balance sheet appear to look better than what it is, usually a last ditch attempt to improve the business…
If you want to buy speedy shares then like anything else it’s always a risk, if the company pulls it off and is able to improve the structure of it’s business for the better then in the long run share price should rise a again..
Don’t forget people, shares are a risk… buy low, sell high…
Rhys Gregory – Speedy PLC Shareholder
