Australia's largest stock trading and investment forum Australia's #1 stock forum

APT

0.00%

$66.47 afterpay limited

Is the SPP about to push the SP off a cliff???, page-119

First 119 Last

Share
Profile

Follow
Launched

2,404 Posts.

2604

11/12/19

14:56

Post #: 41913055
Share

Originally posted by Andredamus1: ↑

“The SPP is open until 17 January so there is no rush to apply, but with the stock so far ahead of the SPP price one option available to shareholders – especially those comfortable with the size of their holdings or without enough cash to apply for the full $15k – is to sell some stock now and use the proceeds to apply through the SPP.”

I suggest you actually read what they have written (reproduced above for your convenience), rather than interpreting it through the lense of your short position thesis which you have so kindly shared with us over and over for the past number of days.

As you are aware, the maximum number of shares to be issued under the SPP is c.1.3m and those wishing to arbitrage could do it either prior to or post allocation depending on whether they are more focused on arbitraging price (you know the price now but don’t know what it will be in late January) or volume (you don’t know what % of your application amount will actually get allocated). Certainly if there is significant scale back, those that sell now might actually be forced to buy on market to maintain their holding which flies directly in the face of your thesis (ie post allocation there could be more buyers than sellers who have chosen the arbitrage route).

Expand

Yeah mate.
Read it.
As it says there's plenty of time between now and then to apply so if they thought the sp had a chance to appreciate then I don't think they'd be recommending selling today under $30 as the 'arbitrage opportunity' would be much greater.
Guess they thought that price was best you'll get before then.
But hey, it's the markets so I guess all information is open to interpretation...

APT Price at posting: $29.54 Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

Emerald & Azure score Digger & Dealer awards

WBC

Westpac records 6% profit growth in third quarter of 2024

Bitcoin: Current State of Play & Where to Next | Swyftx

EQR

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble