Short term - knowledge library 2.0 (This thread is READ ONLY.... No unauthorised Posts), page-3

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    How to Trade a Cap Raise
    Collated by Freehold

    Poster: Freehold
    Date: 28/07/16
    Time: Unknown
    Post #: Unknown


    In my experience of cap raises (reckon I seen 100's maybe more than a 1000 ? ) where there is a significant discount to the prevailing price will see the share price revisit the cap raise price in 1 to 3 weeks afterwards 90% of the time so put in a buy order at or around the cap raise price and be patient... in the other 10% of the time the stock will rally usually if the stock story is super bullish and the market perceives the only thing been holding back a run is the lack of cash... so its a judgement call. Conversely if you own the share and are in profit then the reverse is true... Sell Immediately and Buy back in around the cap raise... although have a buy stop if your wrong and it takes off.
    Last edited by Freehold: 30/12/16
 
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