2009-10-17 weekend analysis of bly, page-14

Hi bubwell, I have done a bit of checking on the price discrepancy/adjustment you mentioned (I assume you refer to the price at peak in mid-August jsut prior to the rights issue announcement). On the Commsec and ASX websites the price peaks at that time at around 0.37 instead of the 0.45 indicated on the IGMarkets chart, however I distinctly remember the price getting to 0.45 ('cos I missed out at that time!!!). As a matter of interest I also checked Bigcharts and their chart had the price peaking in the low 0.50's - that doesnt make sense to me.

I've seen the same thing with RIO's price at around the time of its rights issue. So it appears some data providers adjust the chart when a rights issue occurs - presumably to avoid a dislocation in the charts which would make it difficult for analysis, or perhaps something to do with index calculations? I dont know the answer to that.

Anyway, I'll have to remember in future if I know there's been a rights issue that I should make a notation of that on the chart, or identify whether its been adjusted or not. Cheers, Sharks.