Currently no one should be participating. The discount does not represent value at the current market price.
Factoring in volatility, the risk free rate, corporate AAA bond spread KAR would need to be trading above $5.50 for it to be worthwhile imo if your view of the stock is NEUTRAL.
On my model:
SELL = $5.70
NEGATIVE VIEW = $5.60
NEUTRAL = $5.50 - $5.55
BUY = 5.44
STRONG BUY = 5.39
So even if you are high on the stock the current price does not justify participation when you can buy on market.
spp - who is participating?, page-12
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Last
$1.84 |
Change
0.030(1.66%) |
Mkt cap ! $1.466B | |||
| Open | High | Low | Value | Volume |
| $1.81 | $1.84 | $1.79 | $1.491M | 817.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 24 | 59965 | $1.84 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.85 | 67868 | 17 |
View Market Depth
| Last trade - 11.57am 10/07/2024 (20 minute delay) ? |
| KAR (ASX) Chart |