Another rights offering! I like these things better than a company doing private placements, secondaries, DRIPS and other share issueances as they let current shareholders choose not to be diluted and let us help fund our future returns!
This one seems more favourable than the last one...
-14-1 is better than 20-1
-16.86 is only 1.21 more than 15.65 or 7.7% more, we have gained 6.59% between last closing and this announcement on share price + 4.35% gain on payouts for an almost 11% gain, so theoretically this one is cheaper to exercise. (That said I once again expect share price to retreat a little for the next few weeks into the closing and then a little beyond, it happened last time but not as far as I predicted)
We will have to see what the price is closer to the rights opening/closing date to predict a good rights purchase price, currently 14.7 cents seems the value. Other than a couple days at the start of the last rights trading, they were overpriced to value. (The value also changes a little bit person to person depending on your trading fees and how many you plan to exercise)
@ 18.50 = 11.7
@ 18.25 = 9.9
@ 18.00 = 8.1
@ 17.75 = 6.4
@ 17.50 = 4.6
@ 17.25 = 2.8
@ 17.00 = 1
Personally I'll exercise to get 91 shares + overalotment... depending on the rights pricing I may add several more.. there goes my plans of rebalancing my portfolio 'naturally' lol