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  1. #5041
    Legend
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    Quote Originally Posted by clearasmud View Post
    Because you get the rights for free.
    I think you are right. You get the rights attached to your shares. If the rights issue is done at say 20 cents and the SP is trading at 30 cents, the rights will have a value of about 10 cents. It all depends on the future prospects at the end of the day as to how well the SP will hold up.

  2. #5042
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    Quote Originally Posted by blackcap View Post
    I think you are right. You get the rights attached to your shares. If the rights issue is done at say 20 cents and the SP is trading at 30 cents, the rights will have a value of about 10 cents. It all depends on the future prospects at the end of the day as to how well the SP will hold up.
    Yes if you buy shares now the rights are worth quite a bit as your share purchase now will only be a fraction of your Total investment.
    NTA of the shares now must be about $2.50 to give you an idea.

  3. #5043
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    Quote Originally Posted by clearasmud View Post
    Yes if you buy shares now the rights are worth quite a bit as your share purchase now will only be a fraction of your Total investment.
    NTA of the shares now must be about $2.50 to give you an idea.
    You really think so with all of the problems that they have out there, biggest one imo is farmer supply issue, where is their future with the farmer suppliers bailing out of their supply contracts, talk about stranded assets !!!

  4. #5044
    Legend Balance's Avatar
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    Quote Originally Posted by whatsup View Post
    You really think so with all of the problems that they have out there, biggest one imo is farmer supply issue, where is their future with the farmer suppliers bailing out of their supply contracts, talk about stranded assets !!!
    Farmers are well known for their loyalty to processor .... NOT!

    Whoever pays the most and is perceived as reliable payers get the produce.

  5. #5045
    2019 NZ Stock Picking Winner silverblizzard888's Avatar
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    Interview with a Synlait supplier, but nothing new said. Supplier was supportive, main concern is certainty for the future.

    https://www.newstalkzb.co.nz/on-air/...f-a-130m-loan/
    Last edited by silverblizzard888; 12-07-2024 at 12:29 PM.

  6. #5046
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    Quote Originally Posted by Balance View Post
    Farmers are well known for their loyalty to processor .... NOT!

    Whoever pays the most and is perceived as reliable payers get the produce.
    Yes, it's called business. It's no different from mum and dad's shopping around electricity providers for a good deal.

    And Fonterra will match the offer for certain customers, just like your bank matching another banks discounted mortgage rate.

  7. #5047
    2019 NZ Stock Picking Winner silverblizzard888's Avatar
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    Quote Originally Posted by Toddy View Post
    Yes, it's called business. It's no different from mum and dad's shopping around electricity providers for a good deal.

    And Fonterra will match the offer for certain customers, just like your bank matching another banks discounted mortgage rate.
    Mind you Fonterra also expects its suppliers to stump on money in the hundreds of thousands or even millions for shares in Fonterra to match how much they supply, for the farmers without the extra capital its a bit of a stretch, so its not a straight forward swap.

  8. #5048
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    Quote Originally Posted by silverblizzard888 View Post
    Mind you Fonterra also expects its suppliers to stump on money in the hundreds of thousands or even millions for shares in Fonterra to match how much they supply, for the farmers without the extra capital its a bit of a stretch, so its not a straight forward swap.
    Yes, deal structures can take on many forms like part payments for investment capital. Farmers dont mind as long as they are earning a return on the capital. Also the processors don't like to have too many stretched farmers on their books as that can lead to many other issues.

    Having my capital tied up in the Kiwifruit shares (Zespri and Eastpack) is definitely not ideal. But as long as they beat the cost of capital and it secures my pack out then I don't mind.
    And the banks are allowed to include Zespri shares as a capital asset for lending purposes.

  9. #5049
    Legend Balance's Avatar
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    Shareholders really should be turning their attention to influencing the CR terms and conditions so that it's a fair CR to all shareholders.

    Forgone conclusion that the CR will be dilutary but it does not have to be unfair to other shareholders.

    Remember that a shareholders' vote is required to approve the CR so there's one more hurdle Synlait has to clear before the CR goes ahead and Synlait is recapitalised.

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