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ROWSLEY LTD
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keepnosecrets
Master |
21-Aug-2009 11:21
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If the market price for ROWSLEY were to go up, then the rights and the warrants might be worth subscribing to and subsequently exercising the warrants. But as you can see, the possibility is not there because this morning, the BB downed the price from prev close of 16 cents to 12 cents. This shows that some forces are trying to frustrate the exercises and bring down the company's progress because if no subsription by the public, for the warrants, then no point to go thro the whole process and waste financial resources paying thro the nose.
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keepnosecrets
Master |
21-Aug-2009 11:13
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So you can see from the latest calculation, your average price assuming that someone willing to buy the warrants from you at 2 cents per warrant, will still be above the current market traded price. Your average is 13.3 cents holding on to uncertain value of the warrants because if the market price fall further from the exercise price of 10 cents, then they become worthless. Your loss will be slilghtly more. Currently Rowsley is traded less than the worthiness of the rights/warrant exercise. It wasted the company's time and resources. They should just do a placement then things will be ok. The directors knew nothing of what they were doing!!! |
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ravikp
Member |
21-Aug-2009 11:10
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If the market price will go up...what will happen..is it make any changes the calculation?
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keepnosecrets
Master |
21-Aug-2009 10:57
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The calculation is abit tricky: 2 rights with 3 warrants for 5 shares. You bot: 17.5 x 50 lots = $8750.00 Your rights if sub@ 6 cts=$1200.00 (20 lots) Your warrants x-px 10 = above mket by 2 cents x30 lots = ($600.00) So total all = $9350 net with 70 lots and (30 warrants for exercise) =13.33 cents per lot. So you are still losing because your ave cost is 13.33 cents per share and the current market price is 12.5 cents per share. Again, I was corrent. No free lunches in the stock market. Be extra careful. Check with your brokers please. So total all = |
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ravikp
Member |
21-Aug-2009 10:45
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This is my first buying of RIGHTS shares..i want to try how it will works it...
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keepnosecrets
Master |
21-Aug-2009 10:44
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Sorry the rights in you case should be 20lots insteat of 10 lots. Recalculated this way 8750+1200=9950, 9950 div 70 lots=14.2 cents per share. 14.2 less 6 cents = 8.2 cents, now market is 12/12.5 cents, so you make a little bit since your cost is 8.2 cents plus 3 warrants each.
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keepnosecrets
Master |
21-Aug-2009 10:37
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All depend on the how the counter trading afterwards. You bot 50 lots, so you get 10 rights-cum-15warrants, which mean every nil-paid right share will come with 1.5 warrant. Funny calculations. So you have to work out the price this way: Since rights can subscribe at 6 cents, your total cost is now $8750 + $600 = $9350.00 for 60 lots. This gives you an average cost of 15.59 cents per lot, but you are given 1500 warrant shares which now is 2 cents each above the strike price and therefore your average cost will be 15.59 less 3 cents (1500 warrants) = 12.59 cents. Now the stk price is btw 12 to 12.5 cents per share. So you are quit but lose money on brokerages. Thus it would appear that there are no free lunches in the stock market. Be careful. |
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ravikp
Member |
21-Aug-2009 10:07
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I bought 50 lot the price of 17.5 cents(with CR)...is it i make profit of loose money now...
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ravikp
Member |
21-Aug-2009 09:59
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Good Post
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keepnosecrets
Master |
21-Aug-2009 09:50
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Haha, I am becoming a stock broker already if I start to answer every question about stocks and their derivatives. Luckily we don't have too much of such things like options, puts calls indices and the likes that can confuse a player. This particular warrants attached to the rights probably is new to many. You subscribed to the rights for shares at 6 cents each and they will give you the Rowsley share, then they also give you the warrants with an exercise price of 10 cents. This warrant can be converted to share at 10 cents per share before an expiry date to be announced by the company. So if you want to convert you can anytime before this date. If you don't want to convert, you can sell the warrants off in the market when listed. |
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ravikp
Member |
21-Aug-2009 09:39
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Where to sell the warrants?
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keepnosecrets
Master |
21-Aug-2009 09:33
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Today is x-rights (XR) so if you sell, you will still be entitled to the rights for subsription or selling on listing of the rights. I am assuming that thetre are no changes in the way we did things. I have phobia about changes out of the blues. Cheers..
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keepnosecrets
Master |
21-Aug-2009 09:30
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No letters if similar to all previous rights issues; unless out of the blue moon something changes without us knowing. That condition being false, you will be credited the "rights-with-warrants" rights nil paid until you subscribed for these and pay by atm. Meanwhile before that happens, if it is still normal, then you can sell the rights (when they are listed) should you don't like to subscribe for the shares of rowsley. Your rights being sold you don't get the warrants. Warrants should be listed after the rights subscription is over. Hope this inofrmation helps. Ask your brokers if you are unclear.
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ravikp
Member |
21-Aug-2009 09:22
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If i sell it of this counter today am i still claim the rights issue...
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johnnytanki
Member |
21-Aug-2009 09:18
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Hi bro, may i know when we will be getting letter to purchase the rights cum warrant? thanks |
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keepnosecrets
Master |
21-Aug-2009 09:14
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David Coperfield at play? Maybe. | ||||
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pointer
Senior |
20-Aug-2009 09:20
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Look at the power of RI. 17.5c might be gone soon...time to dump it off...:) |
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louis_leecs
Elite |
17-Aug-2009 08:51
Yells: "half cash" |
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two more week to go ,,,,,,,,,,,,,,,,,,,,right issue book closer,,,,,,,,,very intesting period,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,play save first will not rega | ||||
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equator2010
Senior |
17-Aug-2009 06:54
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"snake swallow elegphant but end out nothing..." very chim leh duuno wat u mean
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elizlow
Senior |
17-Aug-2009 04:48
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East Wind is already on the way. Cheong n Cheong!!! |
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