Forum Archive Index - August 2000

[Derek <dkw@paradise.net.nz>]

Hi Sue,

I got 1000 at the IPO (50c), bought another 3000 at 99c on the way up with
the intention of hanging on to them until after the SPO. After they peaked
at about $1.35, I could of kicked myself when they went back through 99c on
the way down. I sold the lot at about 97c before I lost any chance of
taking a profit. 

As for what's next it's anyones guess. I think that the bashing that TEL
has taken in the last week or so may have rubbed off on Rocom a bit since
it's also a telecom-related stock, then there is the low dollar etc
probably contributing to sentiment as well. 

There seems to be a premium in share price associated with the preferential
treatment that shareholders will get in the SPO. Unfortunately there hasn't
been any details of this yet. I have figured that the price of the share
after the SPO will be somewhere between the SPO price and the price before
the SPO. In other words the premium will be diluted with the SPO and the
share price will probably fall to below the pre-SPO share price. In this
case, why not sell prior to the SPO and collect profits prior rather than
after, since after the SPO there will be many punters wanting to take their
profits ?

It really depends on the demand for the SPO and how easy it will be to buy
shares in the SPO if your not a prior shareholder. Without any shares prior
to the SPO it can be anticipated that the % increase in average share price
will be greater than if one owned shares prior to the SPO, however if the
parcel that one managed to buy is very small, there is little point in
achieving this higher % increase.

I have decided to wait and see, and if the share price drops below 70c to
buy some again. If not I'll put in for the SPO anyway in the hope of
picking up a few then.

By the way, what advertising are you talking about?

Cheers,
Derek


At 01:14 PM 30/08/00 NZST, you wrote:
>Rocom started going down again.  My intention was always to keep until after 
>the pref shares but would like to know what the other chatters think.  
>Personally I think there are good things to come - advertising everywhere 
>and lots happening in the short term but nice to know if others are thinking 
>the same way.
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