Australia's largest stock trading and investment forum Australia's #1 stock forum

GXY

Click for more information

0.00%

$5.28 galaxy resources limited

By virtue of the agreement between the two companies that...

First 84 Last

Share
Profile

Follow
sunrise05

348 Posts.

113

15/05/21

08:35

Post #: 53193582
Share

Originally posted by Puck2: ↑

Hi Invest23,
Frstly, if you were to say have 1,000 shares of GXY at $3.60 a share, currently the value of your holdings would be $3,600 and current share price of ORE at the close is $6.24. So your holding once converted to ORE shares would be worth 569 x $6.24 = $3,550.56. There is a small loss on the transaction but this is pretty small. So really it would be in the best interest of GXY shareholders that the share price of ORE appreciates more so than GXY. But in reality these two shares will I believe not move too far apart from here.
Just an example why this is probable, can you imagine if the shares of GXY rose to $8 and ORE only went to $7?
Your Existing GXY shares would be worth $8,000 but if your shares were converted to ORE shares they would only be worth $3,983 under the current proposal and certainly would not get the support of GXY shareholders. Hope this helps. Cheers.

Expand

By virtue of the agreement between the two companies that conversion factor was set at .569, the movement of the share price of both companies from now to August should practically or naturally will move in tandem very closed to the agreed factor.
Can't contemplate why they are not trading in tandem unless there is a unknown third force in play.

GXY Price at posting: $3.60 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 5 more messages in this thread...

First 84 Last

Add GXY (ASX) to my watchlist