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54.5¢ slater & gordon limited

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deepvalue79

58 Posts.

11/12/17

14:57

Post #: 29539322
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Originally posted by Nick Miller ↑

The point would be to anticipate a +70% share price decline, sell/re-enter at lower levels thereby picking up a larger share holding that you could continue to hold long term.

I assume you hold 31 shares currently worth ~$120. If you assumed $10 each way is spent on brokerage to sell and repurchase, how much can you increase your position by exiting pre-recap and then re-entering after an anticipated correction?

31 x $3.85 = $119.35 - $10 = $109.35 (sale proceeds)

KPMG suggest $3.85 SP will reduce to $0.27-$1.11.

Low end $100.35 / $0.27 = 371 shares (x12 your current position)
High end $100.35 / $1.11 = 90 (3x you current position)

Of course you are entitled to continue holding your 31 shares that KPMG suggest will be worth $8.37 - $34.41 after re-cap.

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Thanks Nick, I didn' t think of it like that. That does actually make quite a bit of sense. Just sold 30 SGHDA and left 1 remaining so I can get back in with a min $100 parcel. What day do the repcapped shares begin trading on? Tossing up wheather to put in a buy order now for 0.27 cents?
Thanks for your help....

SGH Price at posting: 0.0¢ Sentiment: Sell Disclosure: Not Held
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