tny- still green alert to 8c

  1. 258 Posts.
    I thought the last announcement was extremely positive. Such a big investment and cash injection from a single investor has to instill confidence in tny- the issue price could be higher but I guess there is still risk for the investor. What this means over the rights issue is that the new shares will be kept together and yes I understand there are a lot more shares now ( but still less than quantum energy 800 million shares trading at above 70c!) but the new shares are kept by the new owner as an investment ie no immediate swamp of shares in the market.

    I believe the market has overreacted. The Ericsson business is now secured and tny is able to keep sox- presumably the company thinks it is worthkeeping and that it would be a good asset. So all up, existing business is kept as well as new stable Ericcson busines is now settled with a new major investor. This surely has injected stability and reduction of uncertainties in tny which has to be good.

    My experience with mxl was that a couple of years it was in a similar situation but in that case the director was given a whole heaps of shares at low price as compensation for services provided, and mxl was sold down drastically but upon understanding the longer term impact the price was up again- and that didnt take too long if I recall. I think this will happen with tny- we had an overreaction but if one look at market you can see it is building up and people are accumulating.

    Quite a few millions have gone through since announcement. Although green alert target is 8c, I would expect the initial, which hopefully should be with a short time frame ,hike to be to about 5c before consolidating to green alert target- just amazing how market could have overreacted unnecessarily and because of an issue (which people have to consider the positive impact of the issue- it certainly wasnt issued at 1c, and most important a huge cashinjection has occured!).

    Research yourself and see if you agree.

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