STU - Steel & Tube Holdings

[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?

[Robomo]

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?

[winner69]

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

[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?

[BlackPeter]

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 .

[Balance]

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.

[waikare]

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.

[percy]

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.

[winner69]

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

[trader_jackson]

https://www.stuff.co.nz/business/ind...firm-forecasts

Class actions - Scary stuff