...James bought 300,000 CDD shares @ $3.60 per share on 20 April 2015 and he is entitled 137,900 new shares @ $1 per share...he is also granted 34,400 additional new shares @ $1 per share...
...after Entitlement Offer, his average cost is $2.65 per share ($1,252,300 / 472,300 shares)...
...he thinks that if he sold his shares @ $1.40 per share he would make money because he just got them for $1 a piece...
...So James decides to sell 172,300 shares @ $1.40 per share, realising $241,220...
...his average cost after selling is $3.37 per share ($1,011,080 / 300,000 shares)...
...in other words, his holdings are diluted...however, it's better than those not taking Entitlement Offer but worser than those taking Entitlement Offer and not selling...
...and James has to wait for the share price goes up to $3.37 per share instead of $2.65 in order to break even...
...James bought 300,000 CDD shares @ $3.60 per share on 20 April...
-
- There are more pages in this discussion • 53 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
