OTCPK:RKNLF - Post by User
Comment by
factRbeston Jul 31, 2017 10:16am
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Post# 26528238
RE:RKN drop due to x-date re rights offering
RE:RKN drop due to x-date re rights offeringI don't own this anymore but would like to point out something regarding rights.
First a simple search of other rights offerings will demonstate this so it is not just someone's word.
As an example this recently happened to PAR.UN (check)
Without fail the price of the stock will retreat to and sometimes below the price of the right.
Many who bought rights will sell their shares to buy the rights this drives the price down.
Once the rights have worked their way through the system and are converted the share price will adjust. Up assuming the goals of the rights offering are met.
The best time to own the shares is when the rights go X-date and the best time to sell your shares is immediately after.
If the usual holds true what the share price slowly ratchet down to the exercise price of the rights and of course the right value will follow it down as well.