In these COVID-19 ravaged times ASX stocks both big and small are raising cash. Our stock report expert analysts at Under the Radar look to see what you should do when a ASX stock that you own raises capital. Some of the stocks raising money now The list of ASX stocks raising money is getting longer and includes medical technology company Cochlear (COH) raising $880m, data centre owner NextDC (NXT) $672m, Webjet (WEB) $360m, Kathmandu (KMD) $201m, Flight Centre (FLT) wants to raise $700m, international student placement group IDP Education (IEL) $125m, bill board marketing group oOh!media (OML) $156m, and regional media proprietor Southern Cross Media (SXL) $170m. Do you want to own more of these ASX stocks? The first question you need to ask is whether you want to own more of these ASX stocks. ASX stocks that have raised funds in the past month include those of higher quality that are investing for growth: Cochlear and NextDC. In these cases the ASX stock market has moved to a significant premium to the rights issue price, which offered trading profits for original ASX shareholders. Cochlear raised $880m from institutions to allow it ride out implant sales and contiune to invest in the business stock. It will also help pay US$268m in damages and US$138m in costs relating to a patent infringement case. The raising was at $140 per share and now the shares are trading to around $185. COVID-19 disruption for ASX stocks However, many more companies are raising cash because they are desperate, being trapped in precisely the wrong sectors for the current problem. For example, retail, travel, education and media. Look at the capital raising of ASX stock Flight Centre. This ASX stock was on a downward trajectory prior to COVID-19 due to online competition and had previously planned extensive shop closures. This ASX stock is on the hook to refinance $300m of debt facilities and it says it needs $210m to implement “$1.9bn in annualised cost reductions”. The Flight Centre board is telling investors: get the banks off our back and we’ll cut costs by 70% and shut close to 400 stores and deliver an adequate return based on $7.20 a share (having traded previously at $9.91). We’re not buyers. Then there’s ASX stock Kathmandu and its 1.2 for 1 pro-rate entitlement offer! Think about that. The ASX shares were issued at NZ50 cents (A49 cents), half their closing price prior to the issue announcement and versus the February high of $3.54. Kathmandu is trading just under 70 cents, which is a distressed level. But this listed ASX stock has a great portfolio of products and we’ll be looking more closely at the company as the market absorbs all the new shares on issue. Seeking new ASX stock market buying opportunities In the opinion of our ASX expect stock report analysts, in many cases you’re buying into a busted flush, which will not reward you. Our stock report is focussed on finding you the stock tip opportunities that arise through this process of repricing. If you would like to learn more about investing in ASX stock buying opportunities, please join our free trial.