Capital Preservation for Value Investor

[freedom]

Thanks d.o.g. Another classic post. I will save and keep!

Your examples show how rights issues are in general bad for the investor. In theory unitholders can vote against the rights issues, but in reality the major stakeholders are related parties (parent companies like Capitaland) so minorities will be outvoted anyway. Hmmm. Maybe I need to rethink my REIT strategy. Darn!

I think you did not fully understand what d.o.g means.

rights issues are not in general bad for investors. but rights issues for debt repayment usually are in general not good. rights issues for steady income generation might not be good.

rights issues for good expansion can be welcomed by growth investors. be realistic, there are only a few ways for a company to raise money for expansion, rights issue is fairer to every shareholders than placement.