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What if your predictions are wrong and you end up with 2-3 x the...

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howvan

134 Posts.

25/10/14

07:32

Post #: 14180251
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Originally posted by Katavi ↑

Have spoken with four brokers and two are broking arms of three JLM's. Plus several other players who have in turn spoken with their contacts.
Based on these discussions JLM broking arms could fill $3B.
Morgans evidently can fill $1B.
Need to guess on Comsec but lets also say $1B.
Have also heard that institutions are also trying to get into this round of broker firms. ( Find this hard to believe but could easily work for smaller boutique managers )
This equates to demand of about $5B.
Various discussions indicate that Broker firms may get around $1.5B allocated.
This means you will get about 30% of what you apply for. ( This is before possible 20 % scale back. ) So you may end up with 24% of your original bid. ( The government in NZ did a claw back with the last two power floats. However, I hear this will only be done as a last resort with MPL.
I placed my bids on this basis. Ie Bid four times what I really want.

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What if your predictions are wrong and you end up with 2-3 x the amount that you want and you do not have enough funds to cover. Like what Terrier said, your broker may decide to give you more because of previous loyalty ect. That could be a problem.
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