Interesting to see after HBL not really down much despite no longer being entitled to participate in their rights issue... if Tower holds anything remotely close to 70 cents after the entitlement period, this would be most impressive!
Agree but holding above 56c would be a good effort.
HBL's rights issue was a 1:15 and price close to the market price [within 15%] meaning the theoretical price drop on going ex was under 2 cents. 2c gets lost in HBL's daily movements.
TWR's is a 1:1 issue and is about 45% below market the markets pre-announcement price. The large number of rights and big discount to market price combine to create a large theoretical price drop on going ex. From a 70c price today, the new ex rights price should fall back to about 56c. The rights would then be trading at 14c as they still require another 42c payment.
must not have realised what was happening? but hey im thinking one day they will be 70c again
Best time to invest in financial services shares is when they are getting their guts kicked out of them, and during the inevitable capital raising to restore their financial balance.
Heartland/Marac is a prime example and if you go back far enough, all the Australasian trading banks were like that during the 1980s and 1990s.
Best time to invest in financial services shares is when they are getting their guts kicked out of them, and during the inevitable capital raising to restore their financial balance.
Heartland/Marac is a prime example and if you go back far enough, all the Australasian trading banks were like that during the 1980s and 1990s.
baring any big disasters and some success with litigation they could end up with too much money - not that that would be a bad thing
Ex date is today (21 Nov) so if you held the shares as at 5.00 pm yesterday (20 Nov), you are entitled and the rights have vested in you.
Record date is 22 Nov.
If you sell the shares today or tomorrow, transfer of your shares will only take place on T+2 = 23 Nov or 24 Nov, so you will still be recorded as the holder of the shares as at record date 22 Nov.
Unless there's a broker report out there putting them as a screaming good buy, my guess is the selling pressure of people raising cash to take up the rights should start in the next day or two.
Originally Posted by Paper Tiger
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