I have no idea why a 2.83:1 issue at a third of the price is even legal. What a bloodbath.
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I have no idea why a 2.83:1 issue at a third of the price is even legal. What a bloodbath.
I think it's just 'new' investors taking their very nice 25%+ quick profit, courtesy of a grossly unfair capital raising structure in favor of institutions.
Remember that there are 178m shares issued to new investors at 12c.
In their shoes and in the market conditions we are in, who can blame them for taking their profits?
The issue should be like they were in the old days - a pro-rata issue to ALL shareholders at the same time.
It's clear that the structure is to suit the company, underwriters and institutions - bugger the small shareholders.
Yes I suspect there will be a reasonable element of that.
It is frustrating how some of these institutions and insiders are going to benefit from the deal.
However, remember your circle of influence and circle of concern!
I’ve noted the injustice. I’m not particularly impressed. But I’m not going to dwell on it because it doesn’t really help me.
still can not believe it that anyone would buy SKT shares....:eek2:
Let's get things in perspective people!
The Kathmandu TERP was NZ$0.72. It traded down to $0.62 (13% drop)
The Sky TV TERP was $0.17 and it's now down to 14.6 (14% drop)
Kathmandu also opened strongly after the placement and traded down in a similar pattern to Sky TV.
The overhang stock on Kathmandu was eventually absorbed by new institutional investors, Norges Bank etc
The point is, is that this is very normal trading behavior. There's too much downside pressure with all the shorting and short term profit taking going on.
Give the stock time to churn and it will bounce back strongly once all the weak hands have been shaken out.
I keep saying give it time. 2 weeks minimum. By mid July it will be 21+. You read it here first.
People will buy anything if you put a price on it.
Just $254m market cap at today's closing price.
Only $11m debt.
2021 EBITDA forecast range of $100–130m
Sky is a household name in New Zealand. It's a profitable business. Over 1 million customers. Many bandits have falsely called the end of the company for many years but have been wrong. A major restructure of the capital has just occurred. Very interesting time to be an investor. Comcast recently bought Sky UK for $39B. Active investors like Black Crane have entered stock recently and see potential. If this doesn't get you excited then nothing will.