. Pre mlx traded at steady pace. If holders wanted to dump mlx they should have done before the split.
Mlx cum was recorded at $1. 59
1.59 / 3 = 53 cent for ex mlx, $1. 06 for wgx based on 2:1 allotments
This calculation is also taken into consideration whether original mlx holders want to keep their shares
as they could apply for roll-over relief regardless any capital gain/loss in order to recover the price of $1.59
Original mlx holders are the ones hold mlx for over a year.
So I believe the majority LT holders are still there.
. What happens if wgx is dumped tomorrow as expect as mlx sp
Wgx 100 _ mlx 59 = $1. 59
Wgx 90 _mlx 69 =$1. 59
Wgx 80_ mlx 79 =$1. 59
This is only in theory and in fact shorters don't want to hold wgx that's why they dumped mlx
Is gold having any implications in short-mid term?
Normally goldies will surge everytime the market is down. I hold just one gold stock in a hope that Italian referendum will lift gold demand but today Goldies are hopeless.
Any capital restructure will be negative for mlx sp as they take into accounts of everything but shorters won't even look at that. If they fall they simply dump regardless cash flow positive and growth stories as mlx is having a high chance of takeover offer.
The market will find its equilibrium after both are fully traded on asx. If I'm wrong I would lose my shirt, right?
MLX Price at posting:
58.0¢ Sentiment: Buy Disclosure: Held
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