Forum Archive Index - October 2000

["Rob Neal and Mandy Aldridge-Neal" <randmneal@xtra.co.nz>]

Theoretical Value is great but lets talk reality (thats what will happen,
not what should). Can you give me examples of shares trading at their
theoetical value ex rights? I think not they always tend to trade at a
premium. The share market would be a wonderful place if what should happen
did happen and I guess we will see on Monday what reality brings. There are
certainly market makers out there willing to write options you may need to
just do some work to find them (they won't phone you up) The only thing for
sure is, on monday I will have either made or lost some money and others
will still be moaning because the New Zealand market isn't big enough to
make large capital gains.

Cheers

Rob

----- Original Message -----
From: <veritas@i4free.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, October 04, 2000 10:27 PM
Subject: [sharechat] Too Good To Be True


> Further to my earlier posting (which, for some reason, is being treated
with ignore) on what grounds is it supposed that the ex-rights price will
not be at its theoretical level - whether that be 12.5% lower than the
cum-rights price or whatever (I haven't done the maths, but am accepting the
calculation in the initial posting on this subject)? (The dividend payment
is another matter). If some sucker can be found to make the suggested put
option worthwhile, then well and good, but    there are not too many flying
pigs out there these days!
>
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