You would have thought they would've updated the market, since their last announcement said the rights issue would be completed by the end of June.
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Indeed. The quality of this company is in it's products, not in it's governance and relationships with (minor) shareholders. NZX Regulatory seems not to monitor and act in response to SCT omissions. The payment dates for the last interim dividend were changed to comply with the terms of the SCT dividend reinvestment plan (and NZX rules) only after a shareholder complained to NZX. The board secretary seems to perform woefully, insofar at least as notifications to NZX are concerned; percy's post # 172 suggests another failing. Oh that SCT had a topline board chairman, say a Sir John Anderson, who would insist upon professionalism.
This must be what they were referring to. From the July 2011 Investor Presentation p15 talking about their 'new' industrial automation division.
New division focused on robotic and automation solutions for industry
- predominantly NZ and Australia based across multiple industries – non specialised
- development and application of SCT’s intellectual property
Current developments underway include
<snip>
- on 29 June 2011 SCT announced the signing by SCT of a conditional agreement for SCT (or its nominee) to
purchase a 75% share in a Chinese-based manufacturing company
SNOOPY
I got the rights issue price correct, but the issue was 1:4 and not 1:3 as management originally suggested. That means I may have to put some of my rights money into the over-subscription facility we have been promised. At least management has been good enough to give us one. It is nice to see existing shareholders looked after.
SNOOPY
More information here:
http://www.odt.co.nz/news/business/1...a-manufacturer
"Scott is buying into Teknatool International Ltd's Qingdao-based subsidiary and manufacturing company, Qingdao Teknatool Machinery Manufacturing Co Ltd, which specialises in lathe technology and energy-efficient motor manufacturing, for $975,000."
"Mr Hopkins said there may be uses for the motors in Scott's other divisions, in new "local projects" yet to be unveiled, and may possibly have applications in its superconductor division."
It is quite annoying when this sort of information isn't released to the Stock Exchange. Perhaps it was because the purchase price was less than $1m, so not significant?
SNOOPY
P.S. Was in the area on other business , so called into SCT on Maces Road to see how they went in the June quake. The women behind the reception desk said everything was OK. Even though there were port-a-loos on the street, they didn't need them and the workshop was 100%.
I would say it depends on what the two largest shareholders Silveracres (associated with former chairman Marsh) and Ian Uruquert's Estate decide to do. I haven't seen any evidence that the latter is selling down in anticipation of some arbitrage deal, as they did once brfore. But then again the wrap up tender to institutions for all unsold rights would suggest management do not expect everyone to take up their rights. My guess is that unless you are a top twenty shareholder, you stand a very good chance of getting as many shares as you like!
SNOOPY
Well there is an old saying that if something seems too good to be true, then it probably is. There were two trades today at $1.40, yet under 4,000 shares went through in total. Those sellers would have been paying through the nose for brokerage (in percentage terms). Try selling any decent sized parcel of shares and 'the market' could instantaneously collapse.
SNOOPY
well some one woke up and took all the buyers out at $1.40.
Hope it was you Snoopy.!
Wow a whole 3000 shares traded! A marketable parcel for one - yes. Not a real arbitrage opportunity. No it wasn't me Percy. I have already sold what a needed to at an average of $1.45 some weeks ago. Sell into strength, buy into weakness is my motto with these thinly traded shares.
SNOOPY
Quite right Zigzag. I got my rights entitlement in the mail today and sent away my cheque for what I was asked for, plus a few dollars more hoping to pick up a few more shares. If I don't get the extras, then I don't get 'em. That's life.
Many other people must have got their rights too because the price has dropped to 11c today (equivalent to $1.31 for a head share) as I write this.
The buyer for those 4,000 shares that Percy told us about has been taken out too. So the only buyer is sitting there at $1.20. It looks like the rights price is the real indicator at the moment.
I expect the rights price to dive further and that should provide less of an incentive for marginal rights holders to take them up, and make them uneconomic to sell on market for most. It will also mean the traders well start selling. This is of course great news for the likes of Zigzag and myself who are after a few extra shares in this capital raising.
SNOOPY