RE: working out my avg post RI27 Oct 2020 15:52
just picked up this from another thread -
SELL now and BUY Rights. Why take the chance?
Somebody today at about 3.30pm finally figured out that there are 10:3 coming down the tracks at 32P!!
At 200p Pre-R = 6+3.2 = 9.32/13= 71.7p XR
At 150pPre-R = 4.5+3.2 = 7.7/13= 59.2p XR
At 100pPre-R = 3+3.2 = 6.2 = 51p XR
So take example of person who sold at 250p recently. Lets say he has a 1,000 shares.
He raised 2,500 Pounds. If shares fall to 150p Pre-R, (they may go even lower, like 105p recently,) he can use his 2,500 Pounds to buy 4223 shares XR (52.9p x 4223)
If he stays put then he takes up 3,333 rights shares at 32p = 1,066
Total shares now owned = 4,333 - nearly same as above BUT he had to put an extra 1,066 Pounds into the equation - to take up rights. This is the GAME going on here!!