RE:RE:RE:Have the rights starting trading?....I don't see them yet. I needed to view the rights trading page to re-activate it on the watch list so now I see it's moving.
They seem to be trading pretty decently on value within a couple cents (14.14 cents as of 18.84 closing), other than someone who bought a bunch for over double the value lol...
For those new to Rights offerings:
For those that don't know what I mean by value, take what ever the current price is, minus the activation price (16.86 in this case) and divide by 14 (current rights ratio). Also keep in mind if your buying rights you wanna keep it in multiples of 14, and you want to divide your trading fees by the amount of rights you buy to make sure it's worth your time.
Examples:
9.99 Scotia trading fee on 14 rights = 71.35 cents per right on trade fees before the price you bought... basically you've added 9.99 to the 16.86 activation price + what ever you bought the rights at to acquire one share...
9.99 on 14000 rights (1000 shares) = .00071 cents per right 0.00999 cents per share so if you buy the rights a penny below value your good
Also keep in mind that the value of what a right is worth is based on what the share price is currently, you won't know if you got a good deal until the closing day of rights trading and even beyond as usually shares retreat closer to the activation price within a few weeks of the offering is completed. Last one didn't fall as low as I expected but still retreated, I would not be surprise to see the price fall into the mid 17s after this, therefore personally I'll be looking for a rights price around 5 cents before I would make a move to add for myself.
So you don't have to search for my last prediction, at the time of offering the price was moving in the 17.70-18.05 range. I predicted a fall to 16-16.50 on an activation of 15.65, the price fell to 17.11-7.14, spiked on dividend payout and retested low 17s between 17.08-17.25 for the better part of 2 months before our current climb. So it fell about 50% of my prediction... taking that into consideration, if you paid 7 cents or less for a right last time you made a good call, I don't think they traded that low as I remember 10-13 cents most of the time I believe... thus buying rights was not worth anyone's time, they faired better to wait to extend their position or start one.
Also on the previous rights offering a few years before that, the price actually fell to and below the activation point (unfortunately I did purchase rights at that time as they were well priced at time of offering and activation), but there were also other influences that caused that major retreat like the feds altering mortgage rules I believe post offering.
Each offering has different liquid situations, so have a plan that your comfortable with when looking to acquire rights.