Asteroider - the Retail SPP is not underwritten, if you have a...

Asteroider - the Retail SPP is not underwritten, if you have a look in the offer document. I think that retail buyers have been trying to get some extra stock at 45 cents, possibly because they have seen the derisking post SPP result in some good upward moves in other stocks.

I personally think that this SPP was well priced by the IOF managers and the underwriters either stuffed up, or had a good cut for the deal. I think the underwriters and subs are carefully trying to dump their excess stock in competition with the retail SPP.

I'm not sure of the psychology of the 45c buyers, but if I decided the derisking would create an upward move in the SP, I might decide to buy on market at 45c - less dilution and less hassle, especially if on a margin loan?

If I get some stock at sub 40 cents (seeking a 15% earnings yield), I'll hold it for the full stockmarket cycle, as I think they are through the worst. I'm hoping for a dip inspired by short players and overhang. However I think in two months IOF will be well above the SPP price.

We'll see if I am lucky soon enough.