A WAIT­ING GAME

Finweek English Edition - - SIMON SAYS - BY SIMON BROWN

Rolfes is a favourite among the small­cap en­thu­si­asts, but the price has been un­der pres­sure. The view was that man­age­ment needed to raise cap­i­tal, but a rights is­sue was not a vi­able op­tion given the cur­rent share price. How­ever, the com­pany has an­nounced a se­ries of ne­go­ti­a­tions such as buy­ing out t he mi­norit y s hare­holder in Agchem, sell­ing non-core as­sets and ac­quir­ing some un­named as­sets in the spe­cialty chem­i­cal space. This doesn’t im­me­di­ately re­solve its need for more cash, but it does help. That said, with Rolfe’s price get­ting weaker, I wouldn’t be in any hurry to buy. Rather wait and see how t hings play out af­ter the an­nounce­ments and wait for the mar­ket to re­spond pos­i­tively.

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