Did current shareholders really think they could buy stock in SPP at 10c and sell it at a 40 to 50% profit? Made a quick $15k on the SPP.
Did current shareholders really think that the share price would trade at a significant premium to the issue price of 10c after 2 billon (2,000,000,000) shares were issued?
This is not a must have stock. It's not some new tech with massive growth. The company will continue to shrink as more stores close and business units are closed. It's not a yield stock. The industry is facing some of the toughest times of late. So best case it's a deep deep value turn around play with significant risk that will take significant time.
Here's a theory. The underwriters will be paid some $14m. which before the recap is around 50% of current equity. The underwriters could have easily supported the share price by buying a few million dollars worth of stock to keep the share price in the mid teens to ensure the placement and SPP get done. They take a big loss on the stock they have bought as they sell it back into the market but overall have still make a killing. Looks like retail and current shareholders get screwed.
Will be interesting to see how this trades next week when an additional 2 billion shares hit the market. AIMO
- Forums
- ASX - By Stock
- RFG
- Ann: Share Purchase Plan
Ann: Share Purchase Plan, page-37
-
- There are more pages in this discussion • 39 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add RFG (ASX) to my watchlist
(20min delay)
|
|||||
Last
7.9¢ |
Change
0.002(2.60%) |
Mkt cap ! $194.0M |
Open | High | Low | Value | Volume |
7.8¢ | 8.2¢ | 7.7¢ | $2.475M | 31.02M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 57848 | 7.9¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
8.0¢ | 575955 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 57848 | 0.079 |
5 | 346617 | 0.078 |
4 | 217583 | 0.077 |
6 | 333696 | 0.076 |
2 | 1014238 | 0.075 |
Price($) | Vol. | No. |
---|---|---|
0.080 | 575955 | 2 |
0.081 | 1950000 | 3 |
0.082 | 173681 | 3 |
0.083 | 316649 | 4 |
0.084 | 1151121 | 5 |
Last trade - 16.10pm 25/06/2024 (20 minute delay) ? |
Featured News
RFG (ASX) Chart |