Post by
funthatsfree@yahoo.ca on Nov 14, 2012 7:07pm
RIGHTS
How many rights per share? and what is going to happen with the share price ex-rights? I suppose there could be a pop in share price before Ex-rights day as new shareholders enter but the Question is What to do with these rights? The slow information stream is baffling!
Comment by
louel on Nov 15, 2012 1:05am
Reading here may help you with your decision.https://www.investopedia.com/articles/stocks/05/062905.asp#axzz2CDOYLsbb
Comment by
mapmaker on Nov 15, 2012 12:36pm
definately confusing... maybe the recent stock rise has made them scrambling to change the price. I am looking forward to exercising my rights though and getting more shares.
Comment by
funthatsfree@yahoo.ca on Nov 15, 2012 1:55pm
Will you be able to exercise the rights and still sell for market rates or will the stock price tank ex-rights(NOV 20)
Comment by
xenes25 on Nov 15, 2012 2:21pm
Because the rights offering is fully backstopped by Brookfield, the existing float of shares will more than double. This dilution means on ex-rights day, the sp has to adjust down. See earlier postings for calculations which speculate on what that price will be...But I wouldn't worry about the price ex-rights...I think it's straight up from there. JMHO
Comment by
funthatsfree@yahoo.ca on Nov 15, 2012 2:37pm
Would you consider selling the Rights themselves?
Comment by
thedave2006 on Nov 15, 2012 2:48pm
we will know how much an adjustment it will be on next week....wonder then, if people know an adjectment is coming, why buy now so many shares?? cheers, dave.
Comment by
xenes25 on Nov 15, 2012 3:39pm
I can only guess that today's buyers are betting on: price of rights (??) + sp next week (??) = more than sp today.
Comment by
mapmaker on Nov 15, 2012 9:52pm
true, there may be 100 million more shares which would effectively make the each share worth half as much.But there will be an extra 175M in total equity that has to be working into the equation as well.It will all depend how you calculate book value.