PEB - Pacific Edge Ltd

[CJ]

CJ, you might like to briefly share your expertise on the subject of the shareholder continuity threshold wrt c/f tax losses to complete the picture. I doubt they would be a T/O target until these are consumed by profits?

Losses require 49%+ shareholder continuity to maintain losses. Small shareholders (less than 10%) are treated as a notional single person so you only have to be concerned with major shareholders exiting.

Re takeover and forfeiture of losses - who knows, if you want something bad enough, do you really care about $x of losses. You set your takeover price based on future cashflows, it just means you cant factor in the tax shelter provided by the losses. However the Buyer might think their global marketing position will neable them to unlock more value than the existing shareholders do with the losses (ie. can offer a price high enough for you to sell.

As an example, I understand that TelstraClear would have forfeited some losses when Vodafone took them over - Vodafone obviously seeing some integration value exceeding the value of the losses to Telstra. Alternatively, you could see an offer for just 50%, which may retain the losses till utilised (would need to check my maths on this one???).

[Minerbarejet]

Maybe just to add volume/liquidity to the sell side in order to help suppress the price so they could buy more.

If that was the case: when they have their quota at the lower price then the sell order will miraculously disappear. How much of that going on I wonder?

[Whipmoney]

If that was the case: when they have their quota at the lower price then the sell order will miraculously disappear. How much of that going on I wonder?

Whilst I was just speculating above I imagine that may occur.

Alternatively they keep their sell order out there and hope that some big insto hits it (as Sparky suggested) so while they would prefer to buy in cheap they're also contempaneously happy to sell out if the price is right. Win/Win much?

[Minerbarejet]

When you think about it I suppose its a kind of backstop. With less than a million shares on offer to .80 then a sudden big time buyer or institution or two buying in lower down could send it up there. Out of my league and possibly "depth".

[robbo24]

12.5% rise in share price and slightly higher liquidity will see PEB added to the NZX50.

Ok well come tomorrow everyone put down buy orders of 82 cents, who's with me???

[Whipmoney]

Maybe, someones got their first bid in at 80 tho..

[croesus]

10 m will be one associated company selling to another.. probably a buy/put transaction.. getting tidied up before 31 March.

Lets see if Mr 80c is there at the bell.

Looks like she is getting ready for another run..

chin chin

[croesus]

Cheers Sparky.... so do you think there would be many retail buyers ..or one or two bigger buyers.

Seems a good discount.. I would have taken some at that price.. did you have 65c offered .. at the time ?

[Whipmoney]

Doesn't matter if the bid is at 74 cents, 80 cents or $1.20, if it isn't enough to break the first ask level it's going to go through at the lower price...

Yeah I get that but assuming the asks don't move then the first market trade will go through today 74 and hold/support the price.

In other words the bids haven't started peeling back due to the off-market trade at 65.

[Whipmoney]

Yes, but it is rather a small trade in the grand scheme of things!

Yeah but sure beats the price signals given off if the market opened at 65!