Apply today - don't delay
Quote:
Originally Posted by
TideMan
But by taking the rights, you pay no brokerage.
For ANZ Direct Trade, the brokerage is $29.90 + 0.4%
So this means the total cost of N shares at price p purchased this way is:
Total Cost = 29.90 + 1.004*N*p
whereas if you buy the rights the total cost is
Rights Cost = N*0.85
Setting these equal and doing some math, we get the price when Total Cost is equal to Rights Cost is:
p = 0.8466 - 29.7809/N
For N = 1000; the break even price is 82c
For N = 500, the break even price is 79c
so the smaller the number of rights you take up, the lower the share price can fall before it becomes uneconomic to take up the rights.
But if you want more than 8,759 shares and the share price is less than 85c, you're screwed.
You need to change your brokerage arrangements:
ASB Securities $30 flat-fee to $10,000 then 0.3%
ANZ Securities $30 flat-fee to $15,000 then 0.2%
[ANZ Share & Bond (closed to new guys) is $30 to $10,000 then 0.3%]
So your break even would be 3000 at $0.84 ($2,550 inc brokerage).
Best Wishes
Paper Tiger
The definitive history of Wynyard Volume 1: 2016 to 2019 - the lean years
Quote:
Originally Posted by
Baa_Baa
So, what do we know about what WYN are doing to stem the tide of capital outflow and boost the incoming tide of revenue. Is it clear, like what do we really know that has substance, that the rights issue or on market purchase even at these apparently suppressed prices won't be a pre-cursor to continued losses, further cap raisings in due course, and even more depressed SP? Can anyone answer that?
Disc: I like WYN, and think it should do very well in the medium to longer term. I am also ecstatic that I bailed a while ago way above the current SP, though for other reasons than the company faces now. What bugs me is whether this is the 'all time low', or whether we're just inflating a tyre with a slow puncture and it'll all come back soon enough for a refill.
I'm not sure if people will agree, but to me this f'up with the $2 minimum cap raise and then mea culpa to $0.85 rights issue is a very unsettling sign, that WYN are out of their depth, in governance, capital management, and managing shareholder value. I don't know to be honest, it just feels really bad. I'd be loath to buy .85 and be faced with .35 in six months, or a penny dreadful in a years time.
So what's giving people faith and comfort that .85 is the all time low and it's all upside from here? Facts please, opinions and anecdote count for nothing.
There is no certainty about the future.
If you want facts then they are all in the accounts: they leached over $50M dollars of cash last year - not good.
They say revenue recognition will be lumpy but cash flow is all that matters at the moment, and if/when they need to get the begging bowl out again.
If you have gut rot over a possible serious decline in price then do not buy it.
My opinion is that it is a seriously speculative share.
It is a shame you do not want any anecdotes, I have lots that would make you smile.
:) :) :) :) :) :) :) :)
Best Wishes
Paper Tiger