Spot on Poly... I have followed Suncorp very closely over the past few years, in fact I once worked very closely with them a few years back.
The cap raising was something I was expecting, though I didnt see it coming at a 37% discount to the last trading price. I think in a way it was a little silly, though there are some positives to it.. They are offering a 20c dividend very very soon, so new investors will be looking to add these to their SMSF.
Here is a chart of Sun.. Not going to put any technical indicators on it as they are basically irrelivant at the moment, though I want to look back at a particular trading day on the 18/09/2008. It was the day they reconfirmed their guidance for FY2009.
On this day it opened at $7.89, before hitting a low of $7.15.. I remember it clearly as I managed to buy a stack of CFD's at $7.18 and $7.21. It showed some amazing strength after hitting this intraday bottom, before closing on its daily high of $8.35. (thats a 16.35% swing from its intraday low to high!).
I get the feeling we will see the same thing happen here today.. Not as large, though it should bounce hard if it gets sold down under the $5.00 mark.
Good luck if you buy, but Im think a buy on open will offer a good short term trading opportunity!
