Wow, I've probably missed posts about this but is certainly horrible googling "Landstead" and "equity swap". All those companies that issued and crashed to near zero. And always exactly the same language, enabling us to benefit from near term news flow etc. Its very hard to be too cynical about these companies. They still manage to surprise on the downside. Surely the ASX should make them disclose how much discount they will nearly certainly have to sell the share at. It only takes a second to read the announcement and see the flexibility the investors has to "trade" the shares to put it nicely. Nothing against shorting shares. Do it myself and it healthy. But when a company puts in place contractual relationships like this which likely limit downside for short sellers, terms should be disclosed. Certainly that's why continuously convertible bonds have been banned in most jurisdictions. These equity swaps look like another angle.
AKK Price at posting:
5.2¢ Sentiment: Hold Disclosure: Held
