Accumulation, page-7

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jj2

1,735 Posts.

29/11/17

23:50

Post #: 29235671
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Originally posted by Gipp ↑

Hi Lowkeyinvestor

I think where Coboltblue is coming from is that some existing shareholders are selling into the current market then using those proceeds to fund their SPP whilst making a profit.

We can work through an example if I may which could help:

Currently - all shareholders as at the 17th November are entitled to participate in the SPP.

If we take the maximum amount available under the SPP for the example which is 333,333 shares at $15,000 (purchased price 0.045cents each share) plus no brokerage costs.

I can as a shareholder sell 333,333 of my old existing shareholding today at 0.055 cents (which was roughly the average price for today) which would give me $18,333 (less brokerage).

I can then use (in 2 days time when the money goes into my bank account) $15,000 of the $18,333 to buy back the 333,333 shares via the SPP as long as I get the money to the Company by 7th December so I have made a profit of $3,333 by doing this ($18,333 minus $15,000).

IMO this might keep the BAR share price a little subdued over the next few days whilst some existing shareholders go through this process (for the record - I didn't, I'll use my allocation to average my price down overall).

Given the market has a 2 day settlement period to receive your funds from a sale and with the last day to participate in the SPP being 7th December (so only a few trading days left) I don't see this continuing for long. You would have to finish this strategy around next Monday to be sure in securing your shares under the SPP otherwise you'll be left high & dry & looking to buy back at market prices.

And there's the possibility of Directors closing it off early so the window could be even smaller.

Hope this is of help.

Cheers

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Great explanation..
I think you'll find tho that most of the selling for this strategy has already been done..
Remember we bolted above 6c after Gary announced the buy-back of birthday gift.. what a gift it was...
And i suspect that with the spp price of 4.5c.. there'll be plenty rushing to increase their holdings.. it really doesn't take too many holders stumping up to fill the allocation.
Always the probability that it gets closed early.. directors discretion.. and sp rises further.
Tide is turning imo..

BAR Price at posting: 5.3¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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Accumulation, page-7

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