SCT - Scott Tech

[Snoopy]

- on 29 June 2011 SCT announced the signing by SCT of a conditional agreement for SCT (or its nominee) to
purchase a 75% share in a Chinese-based manufacturing company

More information here:

http://www.odt.co.nz/news/business/1...a-manufacturer

"Scott is buying into Teknatool International Ltd's Qingdao-based subsidiary and manufacturing company, Qingdao Teknatool Machinery Manufacturing Co Ltd, which specialises in lathe technology and energy-efficient motor manufacturing, for $975,000."

"Mr Hopkins said there may be uses for the motors in Scott's other divisions, in new "local projects" yet to be unveiled, and may possibly have applications in its superconductor division."

It is quite annoying when this sort of information isn't released to the Stock Exchange. Perhaps it was because the purchase price was less than $1m, so not significant?

SNOOPY

P.S. Was in the area on other business , so called into SCT on Maces Road to see how they went in the June quake. The women behind the reception desk said everything was OK. Even though there were port-a-loos on the street, they didn't need them and the workshop was 100%.

[Snoopy]

Would anyone hazard a guess as to the size of the over-subscription pool? Might those mad keen to oversubscribe, and flush, land: (a) 120%, (b) 150%, (c) 200%, or (d) 1,000% of their base entitlements?

I would say it depends on what the two largest shareholders Silveracres (associated with former chairman Marsh) and Ian Uruquert's Estate decide to do. I haven't seen any evidence that the latter is selling down in anticipation of some arbitrage deal, as they did once brfore. But then again the wrap up tender to institutions for all unsold rights would suggest management do not expect everyone to take up their rights. My guess is that unless you are a top twenty shareholder, you stand a very good chance of getting as many shares as you like!

SNOOPY

[Under Surveillance]

My guess is that unless you are a top twenty shareholder, you stand a very good chance of getting as many shares as you like!

SNOOPY

Seems too easy, sell XR (today) at 140, exercise rights and oversubscribe at 120.

[Snoopy]

Seems too easy, sell XR (today) at 140, exercise rights and oversubscribe at 120.

Well there is an old saying that if something seems too good to be true, then it probably is. There were two trades today at $1.40, yet under 4,000 shares went through in total. Those sellers would have been paying through the nose for brokerage (in percentage terms). Try selling any decent sized parcel of shares and 'the market' could instantaneously collapse.

SNOOPY

[percy]

well some one woke up and took all the buyers out at $1.40.
Hope it was you Snoopy.!

[Snoopy]

well some one woke up and took all the buyers out at $1.40.
Hope it was you Snoopy.!

Wow a whole 3000 shares traded! A marketable parcel for one - yes. Not a real arbitrage opportunity. No it wasn't me Percy. I have already sold what a needed to at an average of $1.45 some weeks ago. Sell into strength, buy into weakness is my motto with these thinly traded shares.

SNOOPY

[percy]

Wow a whole 3000 shares traded! A marketable parcel for one - yes. Not a real arbitrage opportunity. No it wasn't me Percy. I have already sold what a needed to at an average of $1.45 some weeks ago. Sell into strength, buy into weakness is my motto with these thinly traded shares.

SNOOPY

Good on you SNOOPY.I notice there is still a buyer of 4,000 shares at $1.40. !! Next buyer is 4,000 at $1.20.

[zigzag]

Good on you SNOOPY.I notice there is still a buyer of 4,000 shares at $1.40. !! Next buyer is 4,000 at $1.20.

Notice that the rights are trading at the moment. Yesterday, 279000 traded at .13 which is the equivilent of 279000 shares at 1.33. So really trading in the heads is kind of irrelevant at the moment.

[zigzag]

Seems too easy, sell XR (today) at 140, exercise rights and oversubscribe at 120.

And also, with the offer being renounceable, it will result in less shares being available for those (including yours truly) who intend to apply for extra shares.

[Snoopy]

Notice that the rights are trading at the moment. Yesterday, 279000 traded at .13 which is the equivalent of 279000 shares at 1.33. So really trading in the heads is kind of irrelevant at the moment.

Quite right Zigzag. I got my rights entitlement in the mail today and sent away my cheque for what I was asked for, plus a few dollars more hoping to pick up a few more shares. If I don't get the extras, then I don't get 'em. That's life.

Many other people must have got their rights too because the price has dropped to 11c today (equivalent to $1.31 for a head share) as I write this.
The buyer for those 4,000 shares that Percy told us about has been taken out too. So the only buyer is sitting there at $1.20. It looks like the rights price is the real indicator at the moment.

I expect the rights price to dive further and that should provide less of an incentive for marginal rights holders to take them up, and make them uneconomic to sell on market for most. It will also mean the traders well start selling. This is of course great news for the likes of Zigzag and myself who are after a few extra shares in this capital raising.

SNOOPY