Why the rush of placement and right issue?

The sentiment has improved dramatically. Many people buy into the green shoot theory or just not wanting to miss the boat. But is recovery clearly in sight? I viewed the worst is over, the credit market has unfreeze, but the recovery is not clearly in sight. US consumer spending still weak and unemployment is high.

As more people has higher risk appetite, this is a perfect time for company to raise money by placement or right issue. Why? Simply because, if we are going to trend down in next 6 to 12 months, at least the company won't run out of money. Some even plan for expansion, using the current low asset price to buy growth in the future.

The market has peaked, any bad news which dash the hope of green shoot might cause the institution to start selling and lock in the profit.