In my experience, a cash raising exercise by a company puts downward pressure on the share price, and sometimes that is a long-term effect. The only people who want that are those who have already shorted that stock and those who want to buy shares at an even lower price. However, sometimes it goes the other way. Recently BOT did a cash raise for 13 cents a share when the share price was 15,5 cents. I (and others) certainly expected that the share price would drop to 12 or 13 cents. BUT... The raise was over-subscribed; they wanted to raise $10,000,000 and got $13,500,000. This indicated that there are lots of high net worth investors who agree with the sentiment that I (and plenty of others) have been statin: the fundamentals of GOT are good and the company will go places during this (Australian) financial year. The share price barely dropped before it started rising again. There were those who were expecting the drop so they could buy in (or buy more) at a cheaper rate, and they...