early piggy conversion is a real possibility.
As the piggies have more than two years to maturity, and for those that have a strong view RAC is going higher, personally I will be holding on to the piggies and buying RAC on market (even if it goes higher than $1.25). Reason being … if you convert the piggies early … you now have exposure to 1 RAC share only. Instead, if you use the $1.25 to buy on market … you will have 1 RAC share and 1 Piggy option to benefit from any RAC sp appreciation over next 2 years. Doubling your exposure to any sp appreciation.
If in 2 years, RAC is::
- $2.50 - you can then sell the RAC share you bought for $1.25 today, and exercise 2 piggies, instead of just one today with the $1.25 cash..
- $3.75 - you can sell 1 RAC to fund conversion of 3 piggies!
- $5.00 - you can sell 1 RAC to fund conversion of 4 piggies!
- and so on …
Unless Dr T(@Davisite) has a good clinical or preclinical reason for shareholders to consider converting piggies early?
early piggy conversion is a real possibility. As the piggies...
Add RAC (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$1.22 |
Change
0.030(2.52%) |
Mkt cap ! $202.7M | |||
| Open | High | Low | Value | Volume |
| $1.22 | $1.22 | $1.16 | $78.70K | 66.45K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1000 | $1.18 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.22 | 4561 | 1 |
View Market Depth
| Last trade - 16.10pm 07/05/2024 (20 minute delay) ? |
|
|||||
|
Last
$1.19 |
Change
0.030 ( 0.42 %) |
||||
| Open | High | Low | Volume | ||
| $1.19 | $1.22 | $1.16 | 11297 | ||
| Last updated 15.56pm 07/05/2024 ? | |||||
| RAC (ASX) Chart |