PEB deals with link services, so you should have your rights allocated to you under your CSN number if you want to trade them.
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How would one trade the rights.. would they appear in our link/asb/db portal? I don't fully understand how we 'access' them if that's a valid term
Clip - yes, you will get mail
ddrone - no free lunch. You can sell your rights, but the value of your headshares will drop by about 2/15's in theory. If you buy someone elses rights for 70 c, you will also have to pay another 55c to settle (seller gets the 70, PEB gets the 55, you get headshares eventually)
baller - they will be registered in your name at Link Market Services
yes, you can 'trade' the rights if you think you know what you are doing. Somehow doubt it, judging by all the questions at 11th hour
Good answers to a few questions, thanks xerof :)
ddrone.
You either sell your rights (automatically assigned shareholders tomorrow) at the market price, or purchase more at the market price, or both, or do nothing.
Later, you either exercise your 'right' to purchase more head shares at 55c and increase your CSN holding, or not (i.e. let them lapse, which would be crazy).
That is, if you are a current shareholder and don't wish to buy more at 55c then sell your rights during their trading window this week and next.
BC
Ok, so effectively whilst I haven't paid for them I am selling at "right to buy @ 55c" hence never have to purchase them in the first place correct? Can you also explain how this works for timing, ie if I sell some of my shares during this time and have traded rights does this have any impact or is it all based on holding as of right now?
For clarity, please correct me if I’m wrong;
If you tomorrow purchased one ‘right’ for let’s say 60c, you must then exercise that right, prior to 27th November 2013, by paying another 55c, you will then ultimately have one PEB share for which you will have paid $1.15 in total.
The number of rights you are entitled to is determined tonight. After that, you can sell or buy all you want and the number of rights is not impacted.
Those that buy rights also have to pay the 55c which when added together, should theoretically = the share price of PEB.
DDrone.........correct. You will automatically be granted those rights based on your holding as at closing today. Tomorrow you can do with them as you wish....hold and convert to head shares, sell the rights or do nothing (dumb). You can sell your head shares you currently own at anytime (from tomorrow) and you will still retain the rights to do what you want with. Whoever buys your righs will have to pay the 55c to convert to head shares...OR........trade them themselves for a profit........ maybe??
Correct Mac, from my limited knowledge!
Any predictions for the price tomorrow? I would have thought that leading up to rights the price would have jumped, but looks like some solid selling pressure. That selling pressure will become a lot greater tomorrow as it goes ex-rights. I'll have the wallet out at around $1.
^Tempted to sell some and try pick up a few more tomorrow if/when the price drops.. risky though. On that note, has ASB securities just gone down for anyone else?
/edit seems to be working, kindof, just veeeeeryyy sloooooowllyyy
That theory of shares tailing off at the end of the day seems to have some merit
I earlier incorrectly stated that ineligible shareholders' rights would be put into the Oversubscription Facility. They won't be, a nominee is appointed to act on their behalf, and they will be offered out via the rights trading window, so this leaves IMO, the number of rights available through the Oversubscription Facility as tiny (it's only those who do nothing, which is dumber than dumb)
I was going to make an effort to get more than my entitlement, but now don't think it's worth the effort. e.g. if any of the top 5 shareholders bid for a decent number, by pro-rata, they take the vast majority, eh winner.........