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Bassguy- missed your comments yesterday re Tally. We've already got a few shares (got in there unusually because we saw they have gold interest in Kolar, India, where my great grandad worked - we have a picture of him there surrounded by workers) & have a Tally card already, use it all the time, loving it. When you look at new banknotes coming out in UK, Canada, USA & Australia all having gold on them, I have no doubt real, gold backed currency will be here soon. Not many days left to get your Calidus soon-to-be gold miner shares free with Keras here ;-)
"The Ex-date for this corporate action is the 26th so this is when the changes on your account will show. If you are short on this date you will be short the equivalent of 1 CAI share for every 3.44229 KRS shares you are short."
After much more questioning he finally gave me the piece of information that explained it, the short on CAI will be a short from 0.
I have spoken to a company that offers this ability and they tell me that if I am short on KRS at the time of the distribution they will open a short on CAI for me in line with the distribution ratio.
Now I have questioned this as it doesn't sound correct to me as the price of KRS is likely to drop, and CAI may drop as new holders sell there shares.
idunnowhatimdoin - don't think you're right and I would double check again with whichever company your hoping to put the spreadbet short on with. As you say the spread at these places is terrible, they use the full advertised spread which can be 10% - 20%.
But check out and double check out the effect of the 'corporate event'. Do you get what I was saying with my example of a Barclays dividend? When it goes 'EX' when the Record Date is passed the sp is marked down at 7 am the next day and derivatives ARE affected - longs credited, shorts debited. This WILL happen with KRS distribution of CAI or you are quids in, but I very much doubt it.
'Ugh hopes' - hopefully we'll see an end to those with KRS and CAI
I've just done some research on this and if I do a spread bet agaisn't the price of the share; i.e. I'm betting against the price of the share no actual shares are purchased or sold then there is no problem with debiting/crediting of the CAI shares.
However, if the price doesn't move as expected than it will cost me £2000 to cover the spread.
Try tallymoney sweet 100, lionsgold (lion) board good place to start but also website. Gold backed currency called tally with app and MasterCard. Basically gold that you can buy a coffee with, or trade, or travel abroad with no exchange fee.
Delisted currently but U have ugh hopes, you can sign up for an account however and it works well.
Cross ramp over, apols ??
IDunnoWhatImDoin not sure where you get CFD (Complex Financial Derivative) it stands for Contract For difference but your definition is fairly appropriate. IG, however,will not allow CFD's in KRS as too illiquid, similarly we're not sure if they will allow spreadbets.
However, I spoke to the guys there and this is the story : it will be a corporate event overnight and your position will be altered accordingly. If you were long KRS you would be credited with the value of CAI stock which would have been given to you if you had physical ownership. Similarly, if short you will be debited a similar amount. So overnight your spreadbet short position will improve if the stock drops in price but you will be debited the profit a long holder would have gained. The 'corporate event' will take it's toll.
Otherwise, similarly, one could always short a stock like, say, Barclays just before it gave a 3% dividend, The sp goes 'ex' the next morning, drops by 3% but you would be debited the dividend (or credited if long simultaneously).
So, no easy money up for grabs with these Complex Financial Derivatives !
From RNS dated 27th September - “ Expected date for the transfer of Calidus Shares to Eligible Shareholders 29th November”
Cut off date 19th. Distribution end of month.
when will we get the calidus stock?
Talking of Deutsche Bank, saw their boss saying negative interest rates were going to cost savers in the EU €160billion a year just for having money in their accounts. How much longer are they going to last? (When are we going back to real money, ie. backed by gold?)
Hi Dunno, I think you’ll find that investors in Keras are more interest in real value in the ground, in gold & manganese, not airy fairy derivatives - they’re not doing Deutsche Bank much good!
If you buy a CFD (Complex Financial Derivative) I didn't think you actually bought the underlying stock, you bought something that is derived from that stock.
I’m interested to know how you get on. Where are you thinking of placing this spreadbet? I haven’t done spreadbets but I often do Cfd’s. If one had a Long Cfd over Nov19/Nov 20, I imagine one would be given CAI shares or perhaps cash to the value. However, with the lack of KRS liquidity, not sure if IG would even do a Long cfd let alone a short one. Perhaps I’ll check it out tomorrow and what might happen on Nov 20
So, I wasn't actually intending to "short" the stock but use one of the many places that allow you to place a spread bet against the share price.
Shorting the KRS stock - interesting idea.
Firstly, who might let one short it? IG ? It might be quite difficult.
Secondly, would the capital reduction actually result in perhaps creating a different entity that wouldn't allow you to carry the short over from Nov 19 to Nov 20 ? Not sure. Perhaps it is a clever idea, certainly the sp is going to fall Nov19/Nov20. Given ownership of KRS shares merits being given CAI shares, would ownership of a negative amount of KRS shares create a liability to provide CAI shares? That is, if you borrowed 1m shares of someone and then sold them, they would not only want their 1m shares back eventually but would also want their CAI entitlement.
Things to ponder but maybe it is a great idea ?!?
I was wondering if anyone else was considering shorting this stock? We all know what is happening although what effect that has on the price is unknown.
I have been thinking about it and I will end up in exactly the same position I'm in now? Apart from the cost of the spread. I'm then left with the choice if the price does drop to use the money to but more KRS shares.
Apologies, if I've broken some golden rule about talking about shorting a stock.