Forum Archive Index - December 2000

[Arkadii Slinko <a.slinko@auckland.ac.nz>]

   John, how then can you explain that the rights cost nothing?

   Arkadii

"I am not suprised to see the price improving (relieved yes, surprised
no).

   If you go back to the pre issue days the shares traded in the .65-.75
range for
   5 months, then the issue was announced and they dived. If the market
valued the
   shares at say 70c, then we would expect to see the current shares
struggle up
   to 40c (70+2*.25/3). I am sure the drop to 25 was an extreme reaction
from the
   holders that didn't want to take up their rights.

   The holders that DID want to take up their rights then kept the price
at the
   25c level, because every time it dropped to 24, it made sense to pile
in, there
   is no need for a conspiracy theory or anything, just the normal
market
   mechanics."


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