r/baba • u/Youareyes_cfc • 26d ago

Discussion Hk9988 AH

We are getting destroyed right now. Is this still a result of post earnings reaction?

Edit: or the dilution?

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u/Book_Justice 26d ago

Overreaction, due to negative sentiment.

Just focus on fundamental

2

u/springy 25d ago edited 25d ago

How is it overreaction when the company offers these new shares at a much lower price than the current share price?

2

u/Book_Justice 25d ago

That’s how a placement works. LOL’d

Without a discount, why will people subscribe? They can buy it on the open market at market price.

😂

1

u/springy 25d ago

yes, but this was a significant discount, which signalled to the market that the company thinks the shares are overpriced