This is my understanding about whats happening with the rights...

This is my understanding about whats happening with the rights issue (as understood from my broker). Could everyone confirm or discuss if they think differently??

1. rights trading right now are short trading
2. to be eligible for the rights, we must be a holder at 6:30pm adeliade time, 25/11/09.
3. rights will be allocated to shareholders at 30/11/09 for them to be able to actually trade the rights.
4. rights trading will finish on the 7/12/09

is this how you guys understand it as well?

if this is the correct case, i'm assuming the price will keep climbing until the close of 25th

target would be somewhere around 70-75c.
( 59c x 5 + 40c )/6 = 55.8c after new share issue
rights value should be around 16c (55.8c - 40c)
hence 55.8 + 16c = 71.8c

but market is likely to buy up to 73-75c closer to the time of close.

i'd appreciate any correction if anyone thinks otherwise,

cheers hs87