2nd rights issue (5May17)....@£0.75. Today's market price £1.34p. I've read Cobham's prospectus - it's a vulnerable business (risk profile).
Without rights issue, firm's future is precarious.
Future prospects may be bright.
Existing shareholders, I'd say, consider it's worth adding to their existing investment. I have to stump up £900.
Issue Terms: Subscription Ratio : 2 New shares for every 5 existing shares held. Subscription Price : GBP0.75 per share (1 For 1). Payment Date (New shares) 05/05/2017

Following the rights issue net debt/EBITDA will fall to 1.5x which is far more manageable than it was and will be well within its banking covenants. I think that the vast majority of shareholders will take up the offer as they will not wish for their holding to be diluted and will want to give the new CEO and CFO (Mellor) the opportunity to execute their turnaround plan.

I decided to hold faith with Cobham, & give the new CFO Mellor a chance despite the numerous profit warnings. A 2nd rights issue is actually a welcome move from my perspective to reward the faithful.

The pension deficit concerns me greatly and net debt remains high, yet I suspect Cobham is likely to remain popular with various investor groups because it is Brit Hi Tech which is always a sexy investment (however unworthy or unjustified the attention).

Stockopedia data screams 'leave the building'. I trust it. However, I hope it might be safe at least to stay awhile longer to see how things develop.

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