jtc speculation, page-61

DJ1,

Usually, rights issues have rights attached whereby these rights can be sold on market as well. It awards every shareholder in a way or another for their long term loyalties.
If a holder cannot afford to buy his rights issue, he can sell them on market. I am sure that there will be someone there ready to pounce on the ones that are offered for sale because they are usually issued at a discount to the current sp, and because they do not cause much dilution, if any, to existing shareholders.

For an example, look at what just happened to NTU. The sp didn't move down at all, but instead it went up like a flash, and more than doubled the rights issue price. The other day the sp was nearly three times the rights issue price, lol.

My opinion is, that, as the instos cannot get their hands on them, they cannot manipulate the market price down either in order to get as many as possible unwanted shares.

If you look when there is a SPP in place, the sp is immeditaley manipulated down to below the current sp value.
Why??? That begs an answer.

For an asnwer to my lats paragrapgh, jus go and look at the current SPP put in place by Central Petroleum, There lies your answer. The sp has been manipulated down so much that it is sitting currently at below the SPP price. Why would anyone buy their CTP SPP entitlement at a price higher than the current sp???? Think about it.

Yeah, the joys of being in the sharemarket.

Take it as a grain of salt if you wish.

Buddy