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intelseb

3,464 Posts.

186

30/12/21

16:09

Post #: 58570107
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Originally posted by Red Baron: ↑

The sum of the parts should be more than the whole. That's why we are demerging.

Using your figures (80c & 40c drop) I'd say you will almost certainly be ahead when Leo lists early April.

However, the share price of FFX will almost certainly run up as we approach the Ex Entitlement date. (assuming no market crash or other event)
The day before it goes Ex, if the market got it right (which it seldom does), the FFX SP should equal the expected Ex Entitlement SP + the expected listing price of Leo.

So the market will try to anticipate both share prices. As an investor, you can just accept that run up in the SP and be happy with the outcome, or if you think the SP has run up too much, you could sell some, or if you think it hasn't run up enough you could buy more.

You need to remember there could be 4 weeks before Leo lists after the ex entitlement date.

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If that's the case from a capital gains discount perspective it might be better to just offload the ffx shares rather than waiting for LLL, it's an option I'm considering, it really depends on your short term goals

FFX Price at posting: 83.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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