In regards with the rights issue, is the following possible (I currently have no shares in CTP but hold them through CFD's:
Buy 20,000 CTP shares on Tuesday for $0.16 = $3,200 Take up the full offer Rights Offer (0.10) = $2,000
Can I then sell my original CTP Shares after the 27th of April say for $0.14 to receive $2,800 and then buy the renounceable rights on the market say at around $0.03.
In theory, I can use the $2,800 i received from the sale to buy a further 22,000 CTP rights for $660(0.03*22,000) + the new shares for $2,200 (0.10*22,000)
This way I can have 42,000 CTP shares and 21,000 options for only $5,260 giving me an average price of 12.5 cents which doesnt include the free options.
Is there something wrong with my calcs and at which dates would I have to buy the original shares and later the rights. Furthermore can I sell my original shares after the 27th of April to buy the rights.
Cheers.
CTP Price at posting:
13.8¢ Sentiment: LT Buy Disclosure: Held
