The easy money has already been made on SIG.The post...

The easy money has already been made on SIG.

The post announcement run from 74c to over $1.10 generated a 50% premium that many were able to sell into before settling back to $1 to $1.05.

I cannot help but sense these shares were bought by traders and non shareholders without understanding the imminent capital raise at hand.

With a swag of 70c entitlements held by SIG shareholders and the sagging share price now below $1, there appears to be no short term catalyst for the price to go up. In reality, the price may slip further as holders arbitrage.

Entitlements will be taken up by 19th January, soaking up most of the cash seeking SIG or CW. After that, l expect this story will play out slowly as vested interests and regulators evaluate the likely consequences of this transaction on the industry.

I will retain a sizable stake post CR, but have released enough cash from poor old SIG to seek other market opportunities, of which there appear to be no shortage for long term value based investors.

GLTASH