-
22-05-2020, 10:17 AM
#2301
Member
I sold all mine the day before this for $0.35. But I still hold a little bit in my daughter's account through Sharesies O_o they better allow take part
Although not sure I want to, don't like these guys much
Last edited by klid; 22-05-2020 at 10:21 AM.
-
22-05-2020, 10:46 AM
#2302
Originally Posted by macduffy
I don't think so. Record date for the issue is Monday, ie ownership must be registered by then. As trading is currently halted and as settlement for trades is two business days, entitlements will be as per the current register.
So does that mean you have until Monday at 5pm to be on the register? Sometimes I will buy into a company by 5pm the day before it goes ex dividend and am entitled to the dividend. Just thought it might be the same.
-
22-05-2020, 10:51 AM
#2303
Member
Very interesting learning experience. I bought in to SKT about a month ago at 27c. Still feeling confident in the company but weary of confirmation bias. Fairly comfortable adding to my investment through this rights issue but this is new territory for me (very newbie investor).
Couple of thoughts from the presentation:
Broadband - Good idea. Trustpower and Contact have executed this well. Low margins but shown to reduce churn. Contact in the HY FY20 presentation stated 20000 customers and I think they launched broadband about 2.5-3 years ago.
Live Sport - Biggest risk here. How long till sport returns is a big risk. There is some interesting wording around the rights. Seems that some of the contracts aren't black and white over pro-rata payments if the sports are disrupted like they are currently. You would think Sky has reasonable bargaining power here although may have to pay money now in return for discounted future rights.
FY21 forecast - I am hoping they are very conservative here. Slightly concerning the continual degradation of ARPU although if they can keep subscribers increasing (albeit most likely lower value users) this should reduce this reduction.
By my calcs, would need to get share price back to 15.9c to break even at full 100% rights option and 15.4c for 120%. Seems reasonable no brainer to reduce loss, even if I sell some or all of them immediately after they are issued.
-
22-05-2020, 10:56 AM
#2304
Originally Posted by mistaTea
Yes, that is how I understand it.
The whole deal is to raise capital and benefit existing shareholders (who have been through the ringer!). Not to let opportunists try and jump on at the 11th hour and make a 'quick buck'
There seems to be 195,900 shares on buy side at 20c and over. Would that be existing shareholders trying to get more before 5pm. cut off time on Monday? Or new opportunists?
-
22-05-2020, 10:59 AM
#2305
Originally Posted by see weed
There seems to be 195,900 shares on buy side at 20c and over. Would that be existing shareholders trying to get more before 5pm. cut off time on Monday? Or new opportunists?
Stop talking about the cut off time. Unless you bought shares on or before Wednesday 20th May you won't be eligible.
-
22-05-2020, 11:34 AM
#2306
Originally Posted by see weed
So does that mean you have until Monday at 5pm to be on the register? Sometimes I will buy into a company by 5pm the day before it goes ex dividend and am entitled to the dividend. Just thought it might be the same.
In the example you quoted, you bought "cum div" and it doesn't matter when registration occurs; the registrar will include your holding when determining who gets what dividend. It's all "automatic" these days but if by some mischance the transfer didn't get processed, you would claim the div from whoever you purchased the shares from. Not so in this instance when an entitlement date has been determined, ie Monday 25 May, trading is halted and settlement, ie registration takes place 2 days after purchase. Hope this helps.
Last edited by macduffy; 22-05-2020 at 11:39 AM.
-
22-05-2020, 11:35 AM
#2307
Originally Posted by Ogg
Stop talking about the cut off time. Unless you bought shares on or before Wednesday 20th May you won't be eligible.
Thanks, and sorry for being so ignorant. I bought 80,000 on 12/5/20 and was getting a bit greedy thinking I could get more, but I can't, confirmed from little talk with SKT offer information line
-
22-05-2020, 11:40 AM
#2308
Thanks, and sorry to everyone. I just love this forum, everyone is so helpful.
-
22-05-2020, 12:15 PM
#2309
Originally Posted by see weed
Thanks, and sorry for being so ignorant. I bought 80,000 on 12/5/20 and was getting a bit greedy thinking I could get more, but I can't, confirmed from little talk with SKT offer information line
Seems like Sky's capital raising & underwriting structure is working a treat!
We have posters here clamoring for 'cheap' shares being issued at 12c, and expecting in the post-issue market for the shares to trade at 15c to 20c.
A few observations:
1. The reason why the underwriters require such a heavily discounted and dilutionary manner is so that:
(i) existing shareholders are 'forced' to take up the issue or get diluted heavily, and
(ii) the underwriters will pick up shortfall stock at a very 'cheap' price with little downside.
2. There is a very good example to show what's likely to happen post the rights issue - Fletcher Forst (FFS).
FFS had to do a similar capital raising way back in 2000 (2:1 at 25c) after failing to find a buyer and after the banks pulled their funding support. Basically, it's a bailout.
SKT is doing exactly the same thing - it's clear no suitor has emerged to takeover the company and the banks want their money back.
In the case of FFS, the underwriters ended up with a big chunk of the capital-raising stock (>20%) at 25c.
They were happy to dish the stock out at 25.5c to 26c for months on end, taking their underwriting fees as well as the %tage gain from the market by selling out their underwritten shortfall stock.
FFS sp traded at 24c at times during that period as impatient traders bailed out on bad days.
So - my prediction is that, depending on what %tage of the stock the underwriters end up with, you will see SKT trading at just above 12c for a while.
Last edited by Balance; 22-05-2020 at 12:17 PM.
-
22-05-2020, 12:31 PM
#2310
Originally Posted by Balance
Seems like Sky's capital raising & underwriting structure is working a treat!
expecting in the post-issue market for the shares to trade at 15c to 20c.
KMD has doubled from placement price of only 50c.
Originally Posted by Balance
1. The reason why the underwriters require such a heavily discounted and dilutionary manner is so that:
(i) existing shareholders are 'forced' to take up the issue or get diluted heavily, and
(ii) the underwriters will pick up shortfall stock at a very 'cheap' price with little downside.
Underwriters unlikely to get much stock. Only got 4% of issue currently. Most will take up their entitlement in full. Exlcluding perhaps Rugby NZ and RugbyPass shareholders.
Originally Posted by Balance
SKT is doing exactly the same thing - it's clear no suitor has emerged to takeover the company and the banks want their money back.
Bank happy to lend more, now $200m + extended 1 year.
Originally Posted by Balance
In the case of FFS, the underwriters ended up with a big chunk of the capital-raising stock (>20%) at 25c.
Doubt they will get more than $50m total. Approx 16% issue.
Conclusion. This is great entitlement offer if
A) You participate.
B) You got Sky shares relatively recently
Tags for this Thread
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks