My reasoning for the 12c cap is that, based on the announcement made last week, SK was saying: we'll pay 12c if this and if that. First, as an in-and-out-and-back-in trader (and they're the ones who determine the price from day to day) I don't see why I should pay more than SK. Second, SK's offer of 12c comes with conditions, so I don't even see why I should pay 12c, because those conditions haven't been met and if SK makes them conditions, then surely they have their reasons, if only caution in dealing with spec stock. Sure the sp may spike from to time because of euphoric traders, but even on the big day last week it didn't end above 12c. Until SK buys (at 12c), the sp will fluctuate under 12c, with brief excursions maybe. After SK buys, there would no longer be a cap, and the sp will move structurally above 12c. That's what I will base my AUZ trading decisions on.
AUZ Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
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