"To implement this strategy one also needs to have plenty of...

"To implement this strategy one also needs to have plenty of available cash to participate in the SPP."

Sure, but that's all part of investing; one needs to have capital to make capital.


"I bought 4 shares of COH before its placement and SPP announement. Now I need to fund 30K to fully participate the SPP."

I'm not sure I understand what the issue is; that's a really high-quality problem to have.

At COH's current price, you are going to make a ~35% return in the space of a little over 3 weeks (30 April is the day the COH SPP stock will be allocated).

That's equivalent to an annualised return approaching 600% (almost -guaranteed)!

Surely you could borrow money at a cost which is a mere fraction of that?

Otherwise, unless you are 100% sure that the other shares you own are going to go up by 35% over the next 3 weeks, you should sell some of them to free up the capital.

If offered a near-risk free 35% investment return by providing funding to one of Australia's pre-eminent companies, I'd beg, steal or borrow the money to participate.