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I was trading SHI. Obviously the price can drop below the RI price, it’s not a glass floor. But people are talking about iAG hitting 60p today, that’s the part that is far fetched.

SIG was placed at 30p, but only for retail investors. The institutions were in at 25p. Also SIG was sat at low 30’s for long after the rights issue. It was only the recent poor results that dragged it down to the 20’s, nothing to do with the rights issue.

RR hasn’t even hit the market yet, it’s not even had shareholder approval yet! So to use that as an example would suggest that you don’t have a clue what you’re talking about.

Why would it go to 70p? Who in their right mind would be offloaded shares below what the RI was priced at? A retrace to bear RI level maybe, but I can’t see why this would go to sub 80p

Ha ha that would be nice, but sadly I think Covid will have something to say about that.

It’s a shame really, because a Brexit deal would have been massive for the market and created a real bill run to ride. But Covid will most likely overshadow any benefit that a Brexit deal would bring.

I agree Bull, but it does happen often after an RI, regardless of the logic.

As I’ve said above, I can’t process the logic of those
That are saying sub 60p. But o have seen a short term drop are RI’s on a few occasions. Very rarely below the initial placement price though. So god knows where the bears are getting 60p from
Ha ha

There is bound to be some drop off over the next day or two. But as a whole I think IAG are well placed now and will see a steady rise past the initial sell
Off. But the truth is no one knows that the market is thinking

I can’t see it being anywhere near that by Friday, but I’m happy to jump on your wave of optimism.

Wasu, a Brexit deal would just be a shot in the arm
To the market in general and one less unknown for
The market to worry about. Long before Covid came along, Brexit has been aggravating the market.

In answer to your question, look at the reverse scenario. Upon the results of the Brexit referendum, IAG dropped over 20%. Which was nuts, is it was never going to change how much we fly. But that’s the market for you.

Any shareholder could buy into the RI. So for example, if they can sell some tomorrow at 98p, they’re nearly 15% up for a quick trade.

Some will do this for sure. But the realty is, most investors are way down on their initial holding, so will be looking for a strong recovery play instead. However, they may sell half they’re RI shares to look in some profit and then hold the remaining.

So, personally I think we will see a dip tomorrow due to profit takers and then a steady rise towards the TERP value over the coming months. (Covid news depending as always!).

But I’m interested to hear from the bears, those predicting 30-60p. What’s your thinking behind this, I can’t get my head around why investors would be selling at a huge loss below the RI price when they chose to subscribe in the first place Not to mention that the company is now financially secure for the foreseeable. I just can’t see the logic that would drive the price much below the RI price.

Very interested to hear the opposing views.

The fact that it’s undervalued and the new shares go live tomorrow it’s what’s driving the price. Quite a common pattern with large rights issues. They drop to near the RI price, then work their way back up to the TERP price once new shares are in circulation. No guarantees of course, but it’s the most obvious driver. Some good Brexit news will certainly give it more horsepower though.

Should end up at the terp value, but no guarantees.

If the market feels this rights issue means the company is now solid. It will recover fast. But if they things it’s merely a band aid. Then it could stay near to the RI price.

I’ve been trading. Been out for a while but got back in last week at what seemed to be. 40p support level and what I thought would be an easy 10%. Didn’t bank on a 50% loss though. Ohh well ha ha

I had the order screen open to double down at 16p, but hesitated and missed out.

Ha ha I like that, if only life were that simple. Where is the bottom exactly? Please let us know so that we can all have a dip. My guess would be that we’re at the bottom right now, which is why I’m back in, but the truth is, no one knows! If it were that easy we’d all be rich.

Thank you. I ended up using a stop limit and that worked. Strange. Same as you though, orders taking a while to fill.

I’ve been waiting for a buy in on Aston and now seems as good a time as any.

But trading 212 won’t let me set a limit buy, it just says order rejected. Does anyone have an idea why this may be?

It’s quite simple isn’t it? You mention potential capital raise, the share price will tank. I’ve felt positive about cine for some time and have been looking for a re-entry point. But the risk is now way too high for me.

Good luck one and all, I’m still routing for cine.

Maybe if your approach wasn’t so juvenile, your opinion wouldn’t be ignored. Thought about that for a minute.

It reeks of it.