skc
Goldmember
- Joined
- 12 August 2008
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- 329
Agree with you particularly about BSL. Sure there's short covering to be had but I am still scratching my head on the very different market response to ARI and BSL's results.
Shorted it yesterday because I cannot believe that this and BLS have rallied like they have given the shocking results they have produced for the last 5 years.
BLS is worse in my opinion but is yet to turn.
Fair points.
Yet if you look at what mining services have done in terms of price movements over the last couple of days and Ore stocks this is fairly certain to continue weakness.
What is their cost of production relative to the others?
Doesn't matter how much they can ship it's how cheaply they can do it given the ramping up by RIO and others coming on tap. Spose that might sustain the consumables.
The steel production should just be a write off otherwise it's just a running liability unless the government continues to support it.
GFC style renounceable rights issue @ 48c.
The rights are tradable under ARIR ,currently with bids at 1c.
The headstock are trading at 42.5c.
WTF? I have never seen this happen before.
Can I shout these rights and buy the head and pocket 7c spread?
People are very optimistic!
You'll probably get only 1c as I'm sure people won't be kind enough to exercise them to give you the 6c.
CDU had a similar thing back in Nov13, Was trading $1.7~$2, did a 1:6 raising @ $2.50 (but with a free oppie)
Too bad there's never any borrow on rights...
GFC style renounceable rights issue @ 48c.
The rights are tradable under ARIR ,currently with bids at 1c.
The headstock are trading at 42.5c.
WTF? I have never seen this happen before.
Can I shout these rights and buy the head and pocket 7c spread?
ARI SP was around the $0.76 mark before the 1 for 1 announcement, so it sort of makes sense. If the SP was priced at 76c so to account for the 1 for 1 dilution then it stands to reason that 1/2 of 76 = 38. So in fact the 48c renon-rights are being offered to the mug punter, um, retail investor at a premium.
Still, as a long term holder is the offer worth the punt, um, take up?
What you are interested here is the calculation of TERP (theoretical ex-rights price). Because ARI is getting new cash to pay off debt, so while the number of shares increased by 2 fold, the share price doesn't just half.
Here's a link on how that's done.
http://accounting-simplified.com/ifrs/ias-33-eps/basic/theoretical-ex-rights-price.html
Of course not! If you want to increase your stake in the business, you buy on market at 38c. You don't take up the rights @ 48c. Only charitable idiots would do that.
Cheers skc. Appreciated.
TERP link is handy. I should be able to work it out from there.
You're last paragraph puts it so much more eloquently than I ever could.
CratonWhat you are interested here is the calculation of TERP (theoretical ex-rights price). Because ARI is getting new cash to pay off debt, so while the number of shares increased by 2 fold, the share price doesn't just half.
Here's a link on how that's done.
http://accounting-simplified.com/ifrs/ias-33-eps/basic/theoretical-ex-rights-price.html
Of course not! If you want to increase your stake in the business, you buy on market at 38c. You don't take up the rights @ 48c. Only charitable idiots would do that.
People are very optimistic!
You'll probably get only 1c as I'm sure people won't be kind enough to exercise them to give you the 6c.
CDU had a similar thing back in Nov13, Was trading $1.7~$2, did a 1:6 raising @ $2.50 (but with a free oppie)
Too bad there's never any borrow on rights...
Has ARI hit rock bottom yet?
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