AIR - Air NZ.

[ordop]

The thing is they're paying $1.25 now to pay another $1.06 in a months time. What are they doing this all on - the revolving equity portion of their homes? Remembering their is approx. 600m shares in circulation and 1.2b rights.

[Balance]

Sp holding up over 9 million traded.. they love this stock.

Shorts have to be covered by tomorrow.

[couta1]

Govt support of this co makes punters bold (and stupid)

Grant has deep pockets with the punters money in them.

[777]

The thing is they're paying $1.25 now to pay another $1.06 in a months time. What are they doing this all on - the revolving equity portion of their homes? Remembering their is approx. 600m shares in circulation and 1.2b rights.

Rights can simply lapse. No money paid and bring on the underwriters.

[winner69]

Rights can simply lapse. No money paid and bring on the underwriters.

And if one lets them lapse they might even get a cheque in the mail …..if book build >53 cents

[Waltzing]

AH yes balance!

[ordop]

Rights can simply lapse. No money paid and bring on the underwriters.

777, I understand they can lapse and the underwriters step up. But, I was thinking more holistically in that people are buying AIR to participate in this 'special' deal to acquire more at $0.53*2. I just think that with a higher OCR and higher interest rates coming, people doing this on their equity are going to hurt and young people buying AIR who don't have oodles of capital are going to get burnt.

At the end of April, if the underwriters pick up any do you think they are long term holders? FFS.NZX holders will remember the underwrites keeping the price at $0.20 for a very long time.

[850man]

Grant has deep pockets with the punters money in them.

GR / JA likely to promote co-governance to safeguard the tax payers share in AIR

[Balance]

AH yes balance!

Could be a tight squeeze tomorrow if sellers hold out for a higher price from those covering shorts! Seen it before!

[JohnnyTheHorse]

No requirement for shorts to cover (unless explicitly stated in their short agreement)? If you are short as it goes ex rights you essentially are now short 2 extra shares at 53c for each 1 you own (i.e. you need to buy back on market 3 shares instead of 1 at some point).