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.........
ASB working now
I just spoke to a broker who indicated that prospectus is misleading, trading dates for rights would Friday as the Record Date is Thursday. Tomorrow is final day to included for the rights offer. I guess the rights may list tomorrow but there would be trading until Friday as they have not yet been allocated.
Are you sure trading of rights continues into tomorrow?
I have read through the amended Simplified Disclosure Prospectus for the PEB rights issue (https://www.nzx.com/files/attachments/184062.pdf).
From the Prospectus, it occurs to me that 4 November 2013 would be the day before the shares are quoted ex-entitlement on 5 November 2013, as shown on page 7 of the Prospectus.
The NZX listing rules define ex-dates as 2 trading days before the record date.
Does this not mean that today was the last day?
Another half a million shares gone through off market after close.
$1.22 561,882 17:00 SP
Today was last day of trading these shares CUM RIGHTS. Tomorrow they will trade EX RIGHTS, and the rights themselves will trade under ticker PEBRC. Prospectus says rights trading from tomorrow, so I will expect to see it listed tomorrow, unless told otherwise by the NZX or CompanyQuote:
Does this not mean that today was the last day?
and yes, it is groundhog day again. 1.22 close
Let us assume that todays close is the right price for the company and thus the shares with the rights entitlement.
So your 15 shares becomes 17 shares if you pay the extra $1.10
15 * $1.22 + 2 * $0.55 = 17 * P
P = $1.141176
Your head shares are now worth $1.14 and the rights should sell at $0.59 ($1.14-$0.55)
Best Wishes
Paper Tiger
I received a response from my brother-in-law to the points raised after my last post in this thread.
Quote:
Just some observations about the comments:
Specificity refers to true negatives I believe - it's the test being accurate when it says negative, i.e. the patient does NOT have the disease. I hate statistics and always did poorly in it...so i could well be wrong.
40 y.o. old non-smoker lady presenting with a haematuria is not clear enough - but certainly would need to be worked up as per usual protocol. Doing a cystoscopy is a but further down the investigations list depending on what the initial tests show. I still don't think there is a place for Cxbladder in this case... but I could be proven wrong in the future.
As for the clinical trials, I have not read it, so can't really provide any reliable comment.
What the company is worth is up to the bean counters and other people who want to invest in it to work out. As for me, too many things are calling for my attention so can't really answer that question. Based on the limited stats I looked at, e.g. P/E, earnings and previous performance - I still think it's risky. But you already know that from the fact it is a biotech. Who knows, it might shoot up! Like cochlear, etc....
So does ex rights tomorrow mean even if I sell shares tomorrow I am still entitled to buy 2/15 of shares I own today?
say if I own 15 shares today and I sell all 15 tomorrow, can I still buy 2 shares at .55 with the rights?
also sorry about the ignorance, how to I redeem the rights and buy the shares?
My Direct Broking account has set up PEBRC in my portfolio and the amount of shares I'm eligible for. I'm assuming it's the same for those of you with ASB. That should clarify the position, somewhat, for us junior members.
now that's cool. shows my entitlement qty even!
I don't see anything in my ASB securities account. We are supposed to receive a letter in the mail in regard to this later on in November? Worried I will somehow miss out due to not knowing some important information.
I see my rights on my anz account. Perhaps because I have hold my share for a long time and did not sell or buy recently so its easier to calculate mine first?
"PEBRC" is the code for the rights, if anyone hasn't discovered it yet.
Thanks again Citizen -
Yep looking at specificity as true negatives is at least partially right. cxBladder will report true negatives (when there is no cancer, and the test gets it correct) 85% of the time. The confusion arises as to what the test is reporting for the other 15% of results.
We tend to think its going to report false negatives (patient is sick but test misses it) But in fact the other 15% are false positives. (no cancer, but test reports there is)
If anyone wants clarification they can look at the math here.
http://en.wikipedia.org/wiki/Specificity_(statistics)
With specificity always remember the bold type first:
Given that the patient is well, tell us the probability that the test gets it right.
Anyways - interesting to know he doesn't think there was a place for it in my scenario. I wonder where the DHBs see it fitting in.
Cheers
They are listed on the NZX site with an opening price of $0.591
https://www.nzx.com/markets/NZSX/securities/PEBRC
Hmm not showing in ASB at all, wierd. ahh well
^cheers - didn't realise you had to put the market in as well, was just putting PEBRC and hitting go :D
with asb securities just type in PEBRC then you have to change the little box next to it to NZX aswell and search and your allocation will be there as it allowed me to place an or for 2/15th of my share even though its not in my automated portfolio.
On another note depth for head shares look good. Opening way back up to 1.25 at the rate meaning no initial dilution
I have not been around that long and my lowest entry was 62c
Cheers bob - it's odd that it shows my PEB shares but doesn't show that I have any PEBRC. If i wanted to trade them I could just do x shares * (2/15) to get my number of tradable is that correct? Them manually add to ASB account and sell them.
I do not want to trade them, in terms of taking the rights, as I understand it i just need to wait for the letter to claim them then do that side of things, does this sound correct?
In with a good sized block at 63c but picked up a small amount at $1.39
The key dates* for the Rights Offer are:
Announcement of Offer 23 October 2013
Rights trading commences 5 November 2013
Record date for eligibility 7 November 2013
Dispatch of Offer document 11 November 2013
Rights trading ceases 21 November 2013
Offer period closes (5.00pm) 27 November 2013
Shortfall Bookbuild for entitlements not taken up 29 November 2013
Allotment date for shares under entitlement offer 4 December 2013
So it looks like we have a few weeks to go before the cutoff point of no longer being able to purchase shares at 55c? Started to worry that I had missed the band wagon with people talking about the shares already appearing for trade. I am a little confused as to why both PEB and PEBRC shares are appearing for trade.
No worries... and yes, you should be able to calculate your holding as you said and simply trade them via your brokerage account.
Also, you don't have to "claim" your rights - they will be allocated to you on the LINK register. You can then trade them, use them to buy shares at 55c or let them expire as you see fit....
Going to be a very interesting day today as to where the share price ends up.
No matter how much you convince people they will still won't be convinced. Thats the nature of people I guess buddy. This is a great product and when the results and capital raised is utilised, this will just get bigger and bigger. I bought some at 85c , was tempted to sell but holding on to it for big banger later on . This year had been good income wise, I didn't want most of sales going to pay too much tax this year.
Can someone quickly explain the mechanics of rights trading.
If you sell at say 59 cents today do you still have to pay 55cents for your right (i.e. pocket 4c)? If not, then conversely if somebody buys at 59 cents on the market do they still have to pay 55 cents to exercise it?
It would seem to me the later would make sense as 59c + 55c = 1.14 (diluted price).
Also now that the share has gone ex-rights can you sell your headline shares and still retain the rights up until the record date?
If you own a Right now and sell it for 59 cents you pocket the money and that's the end of the deal for you.
The purchaser will then have to pay PEB another 55cents to own a share - therefore paying a total of $1.14,
Hope that's clear
Thanks Pierre, I figured it out as I started posting the question, i.e. the sale of the right compensates the Share holder for dilution however was more interested in the timing of sales of the headline shares v rights. I.e. can headline shares be sold prior to selling the rights (before the record date)?
I see someone has bought 173 rights at 55c. This doesn't seem to make sense to me as I assume a $29 brokerage fee would still apply on these transactions? This would make it a fairly costly acquisition.
Is it perhaps a broker accumulating under a cheaper arrangement?
I see someone is asking 200 for the rights to 1773 shares, hes keen.
You will find that if you purchase the rights your contract note will add the 55c to it so you will pay the lot on purchase.
Rights issues were more common in years gone by and that is what happened then. Remember the rights are traded almost up to the day of required payment so if you bought some then the registry has all the paper work to do to send out the payment note to you which would give no time for you to send the 55c by payment day. So the easiest thing is to pay the full value on contract.
You could go ask Alice for an explanation.
Is anyone arbitraging? Selling the heads at $1.22 and buying the rights at $0.60 (total price of $1.15). A bit of time value of money in there as well if 777 is incorrect.
Edit: just noticed the lack of depth on the sell side of the rights. But still, is anyone considering it?
The broker will sort that out for you.
I would expect the heads go sub $1.20 again as people begin with understand the value of the rights.
Ahhhh so much confusion, so little time.......
I've just bought my allocated amount on direct broking and it tells me the cost price was 31.5 cents. Everything looks peachy to me!
This is confusing, I had it all worked out until I read all the posts, seemed straight forward to begin with...
I think ill just exercise the rights to but at 55cents... seems the best option for me.
Im wondering that to.
Edit meant to quote gr8day
You bought your own allocation?
lol
To take up your right(s) to purchase head shares at 55c, you complete the application form in the documentation that PEB will mail you soon, either enclosing a cheque or completing an internet transfer from your bank the 55c * no. of rights = application money (no brokerage).
Or you could sell your rights at the market price (see PEBRC)
Or you can purchase more rights and include them with your application above
Or you can let your rights lapse (not recommended since this devalues your overall investment).
BC
You don't have to buy your allocation.. You've bought someone else's rights at 63c, i.e. you've bought x number of rights above your own allocation of x. Giving you the rights to purchase 2x = 4/15ths of your holding.
To exercise these rights that you've bought (convert the rights to an ordinary shares) you will have to pay 0.55c / PEBRC you own (Your allocated rights and the rights you've just bought).
.......your'e allocation is FREE..............you sure you had an allocation?.......maybe you SOLD your'e allocation?...........31.5c is exactly half of 63c........maybe you sold someone else' allocation.......haha LOL
Seems to be far too many people here who have no idea what they are doing. I find that very worrying.
Best Wishes
Paper Tiger
Yes not complicated at all - after someone explains it. I maintain, stoically, that I'm still happy.
(Grasps lapels on tweed jacket, juts chin and looks off into the distance)
Especially considering the 'everybody's doing it' before the crash comes concept.
I'm happy to say I'm a junior, but some of the misunderstanding and throwing of money at something people haven't properly researched assuming it's all free gains astounds even me.
I think there are some people on here who have made some lucky gains in xero and PEB after getting interested in shares after MRP and are now just throwing their money at anything that trades.
Sneaky blobbles deleting your post!
I was going to say you've got it the wrong way round. However I don't think that plan for Arbitrage will hold as it looks like support above $1.20 is gone.
In saying that I don't know why the price opened above $1.20 in the first place.. Can only put it down to a few poor buggers in the market having poor comprehension.
DISC: My own buy price was $1.28, I would be well pleased if it stays above $1.20 :D
It's a very good sign that people need to begin thinking about adjusting their portfolios for the bear market. This bull run is almost a year older than the average, so the market is due to turn to custard soon. My guess is that this bull will die within the first 3-4 months of next year.
Damn, got stopped out. Leave the computer for a few days and this happens....
Now I'd like it to go lower please, so I can buy back in.
I agree, there is way too much irrational exuberance around at the moment, I smell the end of the bull and potential morphing to bear... Particularly if the NASDAQ is anything to go by...
Attachment 4973
Well its holding up better then i thought it would.
Was expecting more of a drop today...nice.
Western media and economists have been predicting doom and gloom for and from China for the last 20 years - and they have not been correct even once!
Ever wonder why?
I attended a presentation recently where the speaker talked about Western pre-occupation with bad news to the point of obsession.
The example he gave was that during the Greek crisis when doom was predicted for Europe and the global economy over Greece's 8 billion euro rescue package, China committed US$10 billion into building a new port in Tanzania.
Guess what? China's move received zero Western media coverage even though the investment will open up and speed up growth of the African economies.
So BIG YAWN on anyone predicting a global crisis eventuating from China.
Try US, Europe or most likely, Western financial institutions again.