spp, page-8

The arbitrgae on RFE is way too much so I do think that there will be a sell off.

My reasons
1. Even if someone doesnt have $15K, they will borrow short term to avail of the arbitrage (23c at the moment).
2. On the day of listing they might sell the stock and pocket the gain and repay the debt of $15K.
3. This sort of arbitrage selling would lead to a decline in price.

Not everyone has $15k invested in RFE and may not want to have that kind of investment in a small-cap stock which has only fallen in the last 12 months - underperformed the index big time.

A 15K investment in RFE at the SPP could possibly net $10,781 in arbitrage profit less the cost of borrowing 15K.

A recent SPP was Karoon Gas where the share price was about $2 above the SPP and not only did everyone get all the stock they applied for - the price did tank and today we are at the SPP level of $7.

A bird in hand is better than two in the bush - if I could hedge today and lock in a 10k confirmed profit I would do that rather than hold on and wait for $1.20 in the future...that is just y opinion. Markets know best and we will come to know what happens to RFE within a month.