PEB - Pacific Edge Ltd

[trader_jackson]

First NZ has already 'done the deal', PEB's as a company still has a long way to go, so I can't consider something that has yet to occur... ie where will the share price be this time next year? Maybe then First NZ could be proved to be 'right'... (and even then a year is pretty short given the nature of PEB)

I am not sure on this, but surely the underwriters don't 'have' to dump any excess shares... (yet this is what is implied, that all and any excess shares they are left with will be dumped the following week after capital raising close)

[skid]

Normally underwriters are not in the business of holding speculative
shares,,their job is not to second guess the market

(keep in mind the SP shows at .62 but the last 300000 shares have gone through at .61

[skid]

Yes,If the underwriter gets stuck with alot of shares a crash would certainly not benefit them(I probably shouldnt have used the word dump)
They will,however, have to unload those shares in the best fashion they can so they can get back to their normal business. The SP will have to suffer if this comes about.

Meanwhile Im intrigued at what appears to me to be the games they play. Yesterday the SP closed at .62--After close a large amount 300,000 changed hands at .61 so today some one has put a buy for a measly 3000 at .62 so the SP will start at .62 (pay no attention to the man behind the curtain)

On a normal day of PEB trading we see buy and sells that of course vary, but the volume is normally in the same ballpark. Now we are seeing huge volume on the first 2 buys and huge volume on the first 1-2 sells--then they both drop down to normal size orders.
Its like a game of chess-(the underwriters on the buy side for the next 12 days-then on the sell side for the next Xdays)-It would be interesting to know how many separate agents the underwriters have buying.

[winner69]

Yes,If the underwriter gets stuck with alot of shares a crash would certainly not benefit them(I probably shouldnt have used the word dump)
They will,however, have to unload those shares in the best fashion they can so they can get back to their normal business. The SP will have to suffer if this comes about.

Meanwhile Im intrigued at what appears to me to be the games they play. Yesterday the SP closed at .62--After close a large amount 300,000 changed hands at .61 so today some one has put a buy for a measly 3000 at .62 so the SP will start at .62 (pay no attention to the man behind the curtain)

On a normal day of PEB trading we see buy and sells that of course vary, but the volume is normally in the same ballpark. Now we are seeing huge volume on the first 2 buys and huge volume on the first 1-2 sells--then they both drop down to normal size orders.
Its like a game of chess-(the underwriters on the buy side for the next 12 days-then on the sell side for the next Xdays)-It would be interesting to know how many separate agents the underwriters have buying.

Games that highly paid people who think they are important play ---- but hardly productive is it and not really helping the economy

[winner69]

PEBRD at 0.4 cents could be good buying. One good announcement in next day or two and bingo.

I get grumpy when brokers ask you to front up with the 61 cents at the same time - suppose that's one way of helping the underwriter out?

[skid]

I think even if I held enough shares,I would still try to buy from the market at .61 for no other reason than it gives you the immediate opportunity to bail if things go wrong--any time you have to wait ,you are subject to missed opportunities.

Im surprised you have to come up with the .61 after buying the .4--I thought the .4 gave you the right to excersise should you choose to do so.--guess its a bit different to options.

Im at a loss as to why anyone would buy rights at .8 or .9 when they could buy shares at .62 (to save .2c in this volatile market?)

[winner69]

Skid .... good news announcement .... a really good one ..... share price goes to 80 cents .... whats PEBRD worth then .... and hopefully somebody take them off your hands (if you don't want to participate) in the actual rights issue) and you pocket the gain

Dangerous game but for some a better punt than #3 in Race 5 on Saturday

[skid]

Maybe I misunderstood--I thought you were saying that upon buying the rights,you had to come up with the .61 at that time--If you are just carrying the .8 then I can understand what you are saying for a punt(although a really good announcement at this stage really would be a punt)they have already said KP trials are a way off and with it the possibility of CMS coverage(maybe) and then with all that ,how many sales?

Lets face it --A really good announcement would always be good.........More of the same...not so good (and that includes yea for us announcements)

[skid]

Meanwhile someones going all out--just depends on whether you believe its the underwriters or real buyers---one way or the other ,no rush for exercising the rights.

[skid]

Skid .... good news announcement .... a really good one ..... share price goes to 80 cents .... whats PEBRD worth then .... and hopefully somebody take them off your hands (if you don't want to participate) in the actual rights issue) and you pocket the gain

Dangerous game but for some a better punt than #3 in Race 5 on Saturday

Dang!! I had a hundred on #3 race 5 on Saturday