Peregrine Diamonds Ltd. PGDIF

Morning action

[ekim]

pre market bids/asks are out of whack.

Shares are sitting at
16 pennies on the bid and ask (75K vs 56K)

Rights are sitting at
1 penny on the bid and ask (655K vs 129K)

1 penny right implies a share price of 13.3 pennies...so whoever is sitting on those 129K sells, do not know what they are doing.

1.5 penny rights implies a share price of 15 pennies.

Arbitrage confusion pre market.

Who is going to win and will we see news at opening?

Pre-markets are known to be wrong....the imbalance should be resolved immediately on opening

LONG...PGD

EKIM

[mill44]

People should not be allowed to have self-directed trading accounts without being required to take some courses. At least basic math. Why would someone sell for 13.5c when there is a bid at 14.5c? The rights are the better choice even if the price of the rights are the same as the shares. Less capital invested, yet someone is willing to give them away.

[mill44]

The bulls are facing a serious headwind as long as people are willing to take a voluntary 30% haircut,

[ekim]

August 5th is when the subscription agents for US investors are allowed to liquidate those rights to the open market. That will be a bit of a headwind at the time as well. There may actually be a market in place to absorb those rights....or maybe not. LONG...PGD EKIM

[mill44]

Logic says that there should be enough demand to absorb the supply. The evidence suggest that it is too much to expect logic from us, though.

[ekim]

Someone from scotia put a chunky sell at 1.5 cents from Scotia. It just got gobbled up from anon. 0:28:25 T 0.015   20,000 1 Anonymous 85 Scotia   10:28:25 T 0.015   20,000 1 Anonymous 85 Scotia   10:28:25 T 0

[mill44]

The demand is pretty healthy for now but I expect it to dwindle as we approach expiry without news.

[ekim]

It sure lookske there is an iceberg order both sides of the coin. The transfer from Scotia to anon continues unabated. 10:35:47 T 0.015   20,000 1 Anonymous 85 Scotia   10:35:47 T 0.015   16,000 1 Anonymous 85 Scotia   10:35

[mill44]

Someone keeps putting 200k chunks up for sale. Supply at 15c seems to be unlimited. Let's see how demand holds up.

[ekim]

Saw 300K more shares on the ask at 1.5 pennies and it disappeared after a quick refresh of the browser. 10:45:08 T 0.015   300,000 1 Anonymous 85 Scotia   10:40:20 T 0.015   200,000 1 Anonymous 85 Scotia   Scotia is the initiator

[mill44]

Some 3M rights got dumped since retail got their hands on them. For a 5% stake, Sprott needs to accumulate over 20M shares. Are they going to do it?

[justanormalguy]

Scotia only received Rights in accounts this morning (at least mine).  Not the first time they've been a day later than others.  I'll be leaving Scotia in the fall.

[mill44]

I noticed that Scotia tends to be the last one in stuff like this but in features offered they are still way better than RBC. If you want to stick with the big banks, I don't know if you have a better choice.

[justanormalguy]

Scotia does tend to be last but also somehow fails to send some, not all, stuff. I'll move it to TD where my experience has been better.