broker, page-69

Interesting ML250A,

I cant find any 3rd party settlement group or direct settlement acting for DJs in the ASX 17 June list?! I can see all of Pershing's partners but no DJ there.

I could see them trading direct in TPT until about mid last year....then nothing. They've obviously got someone new. You're probably correct in that its Pershing

FWIW,
DJ's underwriting of the option issue was a bloody coup! 20% of the rights were let through to the keeper - despite the options being way in-the-money. Given the avg TPT VWAP in the last week to take up the rights was 24.3c, this implied, with a Vol of only 50%, an option price of about 15c. So 8.756m options went to DJ and their subbies worth some $1.14m of free money, but would have sold out at an average high price so more $ for the DJ corporate team.

Regardless, there's still a very large number of original holders of the ops at 2c (my est 28-30m assuming only 25% of the 21m traded have been re-churned) and these will play a big part in the overall dynamics of the market in the coming months.

Its an absolutely prime target for an insto wanting to get a 5% position. Given avg monthly Volume of about 3m, if an insto wanted 5% (post opts), and given the rule that one should never be more than 50% of a market, it would take an insto 5.7 mths to accumm. This is simply way too long.

Therefore, if there is anyone looking to get a reasonable position without substantially affecting the market, then the oppies become the only and obvious alternative.

Mere speculation ;-)

Cheers

Anyway, as far as IRESS can see, DJ had only sold 2.5m of the Options up until mid last year (but had also been a buyer of 1.2m)