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14-08-2018, 10:15 AM
#261
Stunning case of profound insightfulness in full display this morning :
Some insightful investor stood there and bought 30,000 shares at $1.34 - obviously with oblivious profoundness that the stock has gone ex-rights so should be theoretically trading at $1.19.
And they say that everyone reads the information and understand what is going on?
Last edited by Balance; 14-08-2018 at 10:18 AM.
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14-08-2018, 11:28 AM
#262
Member
Originally Posted by Balance
Stunning case of profound insightfulness in full display this morning :
Some insightful investor stood there and bought 30,000 shares at $1.34 - obviously with oblivious profoundness that the stock has gone ex-rights so should be theoretically trading at $1.19.
And they say that everyone reads the information and understand what is going on?
The offer from STU is...
"Under the Rights Offer, eligible shareholders are entitled (but not obliged)
to subscribe for 1 new share for every 1.9 existing shares held as at 5.00pm
on the record date of 15 August 2018, at an issue price of $1.05 per new
share. This represents a 28.1% discount to the closing share price on the
NZX on 6 August 2018 and a 18.3% discount to the theoretical ex-rights price
(TERP) of $1.28 per share, post the Placement and the Rights Offer, based on
the pre-announcement close of $1.46."
I'm no stockmarket legend but it appears that the stock is ex-rights at 5pm tomorrow. Could Balance possibly be wrong?
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14-08-2018, 11:39 AM
#263
Originally Posted by Robomo
The offer from STU is...
"Under the Rights Offer, eligible shareholders are entitled (but not obliged)
to subscribe for 1 new share for every 1.9 existing shares held as at 5.00pm
on the record date of 15 August 2018, at an issue price of $1.05 per new
share. This represents a 28.1% discount to the closing share price on the
NZX on 6 August 2018 and a 18.3% discount to the theoretical ex-rights price
(TERP) of $1.28 per share, post the Placement and the Rights Offer, based on
the pre-announcement close of $1.46."
I'm no stockmarket legend but it appears that the stock is ex-rights at 5pm tomorrow. Could Balance possibly be wrong?
Seems to marked XR on some trading platforms
And everybody has adjusted yesterday’s close price
Balance never never wrong
”When investors are euphoric, they are incapable of recognising euphoria itself “
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14-08-2018, 12:13 PM
#264
Member
Pardon my ignorance, but why the XR notes and adjustments to the close price being made today (14 August) when the offer document says 5.00pm 15 August?
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14-08-2018, 12:21 PM
#265
Originally Posted by Robomo
Pardon my ignorance, but why the XR notes and adjustments to the close price being made today (14 August) when the offer document says 5.00pm 15 August?
Because the ownership change (i.e. payment and register entry) happens only 2 days after the trade. Buy on the 13th, shares change hand on the 15th (and the new owner gets the rights). Buy on the 14th, shares change hand on the 16th and the old owner keeps the rights. This is what T+2 means .
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
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14-08-2018, 04:46 PM
#266
Originally Posted by winner69
Seems to marked XR on some trading platforms
And everybody has adjusted yesterday’s close price
Balance never never wrong
Thanks, W69 - but if only!
Amazing it is so hard to find an ex-date anywhere in the NZX web-site for any rights issue!
But when all bids and offers are cleared in the morning, that's as good a clue as any that a stock has gone ex.
Bit like when the missus clears out her wardrobe before leaving her hubby.
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14-08-2018, 05:37 PM
#267
Member
Originally Posted by Balance
Thanks, W69 - but if only!
Amazing it is so hard to find an ex-date anywhere in the NZX web-site for any rights issue!
But when all bids and offers are cleared in the morning, that's as good a clue as any that a stock has gone ex.
Bit like when the missus clears out her wardrobe before leaving her hubby.
Under the Rights Offer, eligible shareholders are entitled (but not obliged) to subscribe for 1 new share
for every 1.9 existing shares held as at 5.00pm on the record date of 15 August 2018, at an issue price of
$1.05 per new share. This represents a 28.1% discount to the closing share price on the NZX on 6 August
2018 and a 18.3% discount to the theoretical ex-rights price (TERP) of $1.28 per share, post the
Placement and the Rights Offer, based on the pre-announcement close of $1.46.
Taken from STU news release dated 8th Aug. list 15th as being ex rights.
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14-08-2018, 05:53 PM
#268
Originally Posted by waikare
Under the Rights Offer, eligible shareholders are entitled (but not obliged) to subscribe for 1 new share
for every 1.9 existing shares held as at 5.00pm on the record date of 15 August 2018, at an issue price of
$1.05 per new share. This represents a 28.1% discount to the closing share price on the NZX on 6 August
2018 and a 18.3% discount to the theoretical ex-rights price (TERP) of $1.28 per share, post the
Placement and the Rights Offer, based on the pre-announcement close of $1.46.
Taken from STU news release dated 8th Aug. list 15th as being ex rights.
They have been trading all day XR.
Why?
Read BlackPeter's post # 265 and you will find out why.
Last edited by percy; 14-08-2018 at 05:55 PM.
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14-08-2018, 08:10 PM
#269
Those ignorant punters who may have taken up Zero Commissions offer of $1.88 earlier this year must be feeling pretty pleased with themselves now
”When investors are euphoric, they are incapable of recognising euphoria itself “
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19-08-2018, 10:40 AM
#270
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