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Re: Re: Re: [sharechat] FFS Rights

From:	Derek <dkw@paradise.net.nz>
Date:	Sat, 11 Nov 2000 10:13:56 +1300

Very good point Nick, I missed that.

It's interesting that FCL values FFS at 40cps post issue.

Rubicon are buying around 225m shares at 40c from what I can gather. 
This will add to the 2.5b shares on issue (post rights-issue).
This can be likened to a 1 cps cash injection post rights-issue.
(Given a post-issue price of 28c, the difference being 12c from
the placement-price of 40c diluted by 225/2725 to give 1 cps). 

This makes it 'theoretically' possible to turn about a 10% profit
by buying friday and selling monday (sorry, too late now).

Still, that brokers report is hanging heavily of FFS at the moment,
so it's not so clear-cut.

Derek





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