Member Info for samb69

I think some people don't fully understand how shorting works during a rights issue.
For example if you short the shares before they go ex rights at say 130p. If before ex rights day the share price is still at 130p then on ex rights day the ex rights price is 54p. You do not make 130p-54p as your profit. Your 130p shares with be converted to the ex rights price of 54p in your account by your broker. Your profit will be £0.

here is a link to IG markets explanation of what happens to to shares during a rights issue. Hope it helps..

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/market-details/what-happens-to-my-shares-position-if-the-company-offers-a-right

If I'm not mistaken.. markets are down all over today..

Cleaner1: There will be spike at some point for the II's to make their killing .. Short it to death, buy cheap, sell higher and then leave it for the Private investors to hold it.. seen it so many times

Board are pathetic.. delayed the rights issue so much and let the share price drift only to be shafted by Goldmans & Morgan Stanley to do a rights at 33p. Should have done it 300-350p if they had any foresight.. Maybe they tried and there were no takers but I doubt it..

RR will definitely survive.. but in who's hands and can private investors recover their losses...

casa - at 90p the ex rights price is valued at 45p. Mathematically, even if the share price went to 33p your ex rights value is 32p

what and just hand it over to RR..

If anyone needs to come in and save it then private investors will definitely be completely wiped out!

LtCaptain: in theory the market cap should be alot higher as you just raised 2Billion in cash from the RI around £4.5 billion)(8.5billion shares x ex rights price 54p) but if the share price went down to 30p then the market cap would be roughly the same as today.

You can even add a short to your plan if you can...

As an example of what is likely to happen here. Shares were at around 200p when rights issue shares offered at a discounted price of around 92p. Shares are currently trading at 93p.

Would have shorted this in the morning just below 130p knowing the ex rights price is 54p

In my opinion, this is going to be heavily shorted. This has been underwritten at 32p. The ex rights price is 54p. II's have no incentive in keeping the price above 54p in the short term when then can short it an buy back cheaper before the ex rights date.
If you are still inclined to pile in then do it in batches.. I'm not saying this will 100% go to 54p or lower but I can see 80p coming.

Sell your RR stock first thing and go short..

Yes - totally agree. This is going to be heavily shorted in my opinion. Institutions are going to short this to recover losses and then buy back up...ex rights price is 54p

Just looked at their accounts - some small two bit outfit
https://beta.companieshouse.gov.uk/company/11985427/filing-history
https://beta.companieshouse.gov.uk/company/OC415602

The RNS from WH states that a possible offer of 272p may be made. Hopefully Apollo put in an higher actual offer before Caesars put in their actual offer!

https://northernfinancialreview.com/2020/06/26/boohoo-management-get-150m-incentive-plan/

Does anyone believe that the top guys are not going to make sure the share price hits the targets to get their dosh!

WH are in bed with Caesars - its probably all been planned out that Caesars put in an initial lower bid knowing that they will have to up it again. WH reject it knowing that they can't look to accept a low ball offer. Caesars then up it a bit to 3-320p range. WH then recommend the takeover. Unless Apollo/someone else comes in to to make a offer over 350p (hopefully they do) then I think the final offer will be from Caesars of just over around 320p .. just my two bits of how I think this will play out.

Good timing by them to acquire 5% only a few days ago... Must have a bl00dy good crystal ball..lol