Yes the share price will fall. At the moment with Rusty's machinations the market is valuing the company at between 3 to 4 Cents ex cash. I expect when the ATO signs-off on the cash return and if the company proceeds the share price may rise to 12c-13c.
On the day of the capital return whatever the share price it will drop by the capital component (7c), so 13-7 = 6c. Maybe 5c. So if you wait until the Capital return yes you will be able to buy the shares at 5-6c, but you WONT get the 7c capital return.
As I have said before, Rusty coring out the stability of CVN is ashame to me. Adding instability and risk. CVN if does need to capital raise in the future is very likley to cause a massive drop in share price. Santos could go after explooration well after exploration well, and bleed CVN of cash. especially in the high CVN % leases around Starbuck. And CVN would need to stump up costs for developlment of Dorado and Pavo etc.
Its just a waiting game, the impatient will loose.
CVN Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
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