A WAITING GAME
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.