2024 NZX Stock Picking Comp

[winner69]

Then again XP04 might think yes let them participate in the capital raise ……but they need to sell enough to cover the cost of the new ones as they don’t have any ‘spare cash’

So have 6756 shares now …..entitled to 986 more at $1 …..price close to closing date say $1.00 some 986 needs to be sold …..voila they will still have 6756 shares in competition.

But let’s say share price is $1.10 when they come to sell …only need to sell 896 shares to get the 986 new ones …só end with 90 extra shares.

All seems too hard for XP04 so I stick to saying let’s assume no participation in rights issue and they just keep the 6756 shares

[winner69]

But then again one could say they do have ‘spare cash’ …..the $251 in divies …but not enough to take up the full entitlement

[ronaldson]

There will be 30 entrants clamouring not to be "stiffed" here.

Perhaps if keeping the same number of shares/the original $10k investment intact is integral to maintaining balance in the competition then holders can be deemed to have notionally taken up their entitlement at $1 per share and then on-sold them, thereby receiving the difference as an extra (untaxed) "dividend"? Then the issue would become when they were deemed to have onsold, which might need to be some date after the allotment date on 26 April and when the dust has settled?

[winner69]

There will be 30 entrants clamouring not to be "stiffed" here.

Perhaps if keeping the same number of shares/the original $10k investment intact is integral to maintaining balance in the competition then holders can be deemed to have notionally taken up their entitlement at $1 per share and then on-sold them, thereby receiving the difference as an extra (untaxed) "dividend"? Then the issue would become when they were deemed to have onsold, which might need to be some date after the allotment date on 26 April and when the dust has settled?

Seems only about 50% of shareholders participated in the last capital raise ……possibly only 50% this time

I still say assume contestants don’t participate this time ….nice and easy for XP04

And if share price ends year at 80 cents they be better off