Or perhaps they are taking the advice of their broker or financial advisor........:ohmy:
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Or perhaps they are taking the advice of their broker or financial advisor........:ohmy:
Has anybody recieved the rights prospectus and application form in the mail? Or is it still to come out?
Haven't really had a close look at the price action Balance, but you're probably right - this follows the usual pattern of the Pump before the Dump.
Who's the Arranging pumper...eeee... Broker?
Xerof there is no arranging broker. Costs for this rights issue are estimated at only $100,000, no money for anything more than photocopying, postage and some lawyers to check the documents.
The only thing that gives me hope is that First NZ was buying up the heads before they went ex-rights. They don't often get these special situations wrong.
Harbour Asset Management (i.e. FNZC) seemed willing to support the price when it looked perilously close to failing the rights issue earlier. Wonder if they' will/can keep it supported through till rights expiry? Sort of tricky, since presumably only need a few rights to apply for over-subs and therefore if rights price falls, share price goes with it - semi-death spiral stuff.
On the other hand, could still stack up for rights - will depend if they can get enough cash via subscriptions to survive. I would assume FNZC would step up to the plate with more funds (and perhaps over-subs if they think needed to remove risk of failure). Expect some other large holders will be relatively small price to exercise rights vs their initial investment, so maybe go with it rather than write-off. Buys some time for holders to exit - and market cap is sufficiently down on pre-rights announcement to probably give reasonable odds of exit above rights price.
Don't want to get into banter here, but my cursory research of the SSH notices shows a bit of a pump/dump in December by those honourable gents you mention - they seem to have bought abt 10m (16 Dec), then promptly sold them again (22 Dec)
in what appears on the surface to be a price smoothing exercise.
I'll take another look in a month or two to see if my cynicism is proven correct.
Disc: hold none, never have.
I bought some WDT today. Time will tell if this is one of my better moves.
I bought some too, they make good products, hope their management is as good as the products.
Prediction - sp will go below 1.25c per share when the new shares are issued.