*Sell down on the last day of trading IMO was POK option holders...

First 57 Last

Share
Profile

Follow
deejaay

496 Posts.

29/12/15

19:39

Post #: 16697569
Share

Originally posted by Freehold ↑

Although I suspect there will be no shortage of +ive views about tomorrows listing I think you should also consider some potential negatives if for no other reason than to have some balance to the discussion.

Some caution is warranted/required IMHO. You never know there could be a lot of participants in the Cap raise looking to stag a big profit on open, ....with say a 15c'ish open it would deliver a 50% instant profit given the issue is at 10c (Remember ASX tech sector is not quite as hot as it was a few months ago). The higher the open the more likely folks are to offload into it. Also worth remembering, some folks may have been caught hanging with a unwanted position during the suspension also ... I'm also dubious about "alleged" wildly outlandish unofficial and unconfirmed comments by brokers (ie 59x oversubscribed) I would believe 2 or 3x not 59!

Suspect most of big sells won't appear until just moments before open as they will let the retail traders (Mums and Dads) work themselves into a pre-open bidding frenzy 1st before "potentially" clobbering the buy queue on the starting gun. Also remember that anyone of these "alleged 59 times" oversubscribers (which I reiterate is completely unsubstantiated info BTW) . Could have filled their boots and at 20c on the last trading day. Remember the last trading day itself was a selloff not a rally there was a steep and sharp fall 27.5 to 20c on fairly decent volume.

Finally ask yourself what the market cap will be @ a 10c open, 15c open or 20c open ??? and figure out what you think the company is worth today (with a rational mind) before the hype gets out of hand tomorrow.

As for me I may pick up a few but not an any price... Sub 15c maybe , sub 12 definitely ...quite happy to walk away again if needs be. Trick will be for the sellers to hit the buyers early probably just on Open or in any spikes, Trick for buyers is avoid buying spikes and wait for the inevitable retrace to bottom and then start to accumulate.... Should be interesting to watch whichever way it goes... All is of course only IMHO DYOR.

Best of luck to all holders and non-holders if you planning to buy /sell tomorrow. ...If your a longer term holder then all the above is of absolutely no consequence and irrelevant.

Expand

*Sell down on the last day of trading IMO was POK option holders cashing up. i.e. If one held 100,000 options (strike at 20cents) and sold 100,000 ordinary shares at 25cents they would "profit" $5,000 instantly and still hold the same amount of shares once they converted.. I for one was guilty of this tactic along with many others.

BUD Price at posting: 20.0¢ Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

Trump Victory Sends Bitcoin Surging Above $75K – Is $100K Next?

MMI

Metro Mining inks bauxite offtake contracts into 2026 with Chinese m

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

UBI

Universal Biosensors flat despite fresh deal with US medical product distributor

FG1

Flynn Gold reaches milestone exploration target for Golden Ridge

HotCopper Highlights: Your most watched and most discussed stocks this week

IMU

Imugene kicks off Australian trial for blood cancer treatment

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Trump is President Again: What Does This Mean for Crypto?

Week 45 Wrap: Combat sports usher in Trump 2.0 – or is it male insecurity?; RBA boring; Propane suggests China alive