Yes i am new to AEB and yes, I often trade after rights issues have been released especially in illiquid stocks such as AEB. Do some rudimentary analysis and you can see that this increase in supply after a rights issue in illiquid stocks often pushes the stock below its fair value (simple supply/demand economics there) and so in the past i have often picked up shares cheaply at that point in time (like in AEB today!!!!). Buying shares when they are trading below their fundamental value after rights issue releases is a good strategy which makes money because of the people who participate in the rights issue and want to jump ship at lower prices.
AEB is a bit different for me as i am not trading this stock and am holding for the medium term. Some very exciting developments coming up. I just want to educate others on this strategy of trading after rights issue releases, which will also support the share price and bring new entrants into the stock which should increase liquidity.
I am not sure if your post is pointing out that i have a good strategy, which i am telling others to follow, which somehow makes me a pump and dumper, or something to that effect? Look back on any of those past posts i made and anyone who would have followed my advice would have made +20% in the first couple of weeks after the rights issue was released (some illiquid stocks drop like 40% in the first couple of days and fully rebound within a few weeks, AEB might be in that camp!!!). If you can't see the logic and the opportunity then no worries mate, just sit on the sidelines. Up to you (and everyone else).
AEB Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
