It got extended by 2 weeks!!! I sent the cheque... I mean i see the price as interesting .. why???
coz u do not know the price of the SPP UNTIL the LAST 5 DAYs of trading IMMEDIATELY before the shares are issued.
SO if the shares are issued on a Monday.... the SPP price will be determined on the 5 day avg the week before...
Why I find it interesting??? Coz providing the Share price remains flat on say the first 4 days.. (mon - Thurs).. then the AVERGE price will be quiet nice!! As the SPP price will be the averge of the 5 days LESS 20%..
So even if the stock price DROPS by 20% on Friday... u will still break even (and when compared to 5 days...a 20% fall on a friday will equal to around 10% for the week) remebering its the 5 day average.
The stock has to crash 25% at the very least...to then not make any money on the Spp play!!
Im looking at an issue price of around 8c for the SPP. Last trade: 10c
NEgatives?? F*** all volume though :(
So if that means I need to sell for a 10% profit (instead of 20%) then I will. Profit still a profit :)
Hope this is of assistance,
Regards
DES Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
