By
Reuters
Reuters
Published
Jul 6, 2009
Jul 6, 2009
JJB shares drop; firm mulls fundraising
By
Reuters
Reuters
Published
Jul 6, 2009
Jul 6, 2009
JJB Sports - Photo: www.jjb.co.uk |
"12p appears an excessively dilutive placing price," says Altium analyst David Stoddart, who has a "sell" rating on the shares.
"While such a move would provide JJB with needed expansion capital, there is no evidence yet -- nor will there be for some time -- on what sort of returns those funds would generate," he adds.
KBC Peel Hunt analyst John Stevenson says the discount on any share sale would have to be "fairly significant in order to compensate for the size of the task ahead."
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