Australia's largest stock trading and investment forum Australia's #1 stock forum

FXJ

Click for more information

0.00%

66.0¢ fairfax media limited

REA has MC of 8.81B, and is trading at $67 ps. Apply same...

First 8 Last

Share
Profile

Follow
good2no

904 Posts.

23

10/10/17

12:30

Post #: 27789747
Share

Originally posted by tr0p0nini ↑

The idea is every 1 fxj share contains 0.1 of one tenth of Domain.

If fxj at 0.95 , you will have each share delivering 0.3 to 0.4 value in domain.

If you argue with me that the current price has already price into the domain
Price, let's look at the down side here.

If fxj drop to 0.85 after the split, I will pay on average one dollar per domain share. Or worse, a 0.2 loss per share, I will still be paying 2 dollars for one domain share.

Assuming domain really only worth 3 dollars a share, I will not make any losses until the fxj price is lower than 0.65.

There's a lot of intriguing things here, like the passive funds that will be force to sell the domain shares because it's not officially in the ASX. But then, it would be introduced back to the passive fund again once it gets to point, not to mention the growth fund and real estate themed etf.

Remember there's only 40% of the shares floating around. The shares will be more than likely to be bid up.

Well I just gave you my whole thesis.

Expand

REA has MC of 8.81B, and is trading at $67 ps. Apply same valuations to DOMAIN,
so FXJ with 60% is going to benefit from the split.

FXJ Price at posting: 95.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

There are more pages in this discussion • 21 more messages in this thread...

First 8 Last

Add FXJ (ASX) to my watchlist