[isatrader]

I'll have to look it up, I thought that in a rights issue if you don't exercise your right you automatically have the right sold for you. Therefore you are not down, you have a smaller % ownership of the company and some cash. Maybe I'm confusing terminology.

As I said, it's not something I know anything about, as I haven't had any personal experience with rights issues. But whatever the case, additional shares is dilution, which is rarely a good thing for the stock price in the short term.