And it continues :)
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And it continues :)
We can apply for extra - p22 of the Explanatory Memo refers - but I wouldn't expect many to come out of that, considering the attractiveness of the issue and the fact that rights will be tradeable.
Otherwise, still ploughing thru the "book".
Have a look also at p79, EBOS risk profile after the acquisition.
In passing, FN Area had this today re Sigma, one of the major competitors referred to in Northington Partners' report:
SIP - SIGMA PHARMACEUTICALS LTD
Citi rates SIP as Downgrade to Sell from Neutral (5) - Sigma shares have enjoyed a strong rally but Citi analysts believe it's all a bit too much, too soon. Instead, they counter the company is still facing ongoing risks associated with a weak retail environment, competitive industry dynamics and ongoing regulatory scrutiny of PBS funding.
Also, Listed NZ company, EBOS, has acquired 60% of Symbion, but Citi doesn't see a material impact on Sigma for the foreseeable future.
Downgrade to Sell. Rolling forward the valuation methodology has pushed up the price target by 1c to $0.70.
Target price is $0.70 Current Price is $0.82 Difference: minus $0.115 (current price is over target). If SIP meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in January. Citi forecasts a full year FY14 dividend of 4.20 cents and EPS of 5.00 cents . At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.30."
I agree ,bloody ridiculous. Would have had time to buy a few too. Sounded too good to be true and i confess i had succumbed to utilising the paper gains already. Sparky?
So with the rights now trading the EBOS share price has settled around $9.42, a little ahead of the $8.57 calculated from the pre-announcement share price.
Wondering whether to sell my rights, expecting to buy shares on market at a later date for a lesser price.
Best Wishes
Paper Tiger
Apologies in advance for a real newbie question!
Say I was of a mind to acquire a holding of X shares in EBO over the next few weeks, and presuming that EBO will pretty much follow EBORC + $6.50, what is the advantage - if any - of buying X no of rights then paying the $6.50 rather than buying X EBO shares directly on the market? Is it just a saving in brokerage or what am I missing?
Thanks
BB