Forum Archive Index - July 2001

["Ken Donelan" <kdonelan@ihug.co.nz>]

To set the record straight, you do not pay brokerage when converting the
rights to shares. You only pay brokerage on the rights - which is an even
greater reason for purchasing them instead of the head shares.

Disclosure: I have just purchased some rights at 8.5c and with the head
shares last selling at 60c I am quite pleased with myself. Of course if the
price of the shares does drop below 58.5c then my happness will be somewhat
short-lived. They were selling at 57c just before the rights issue
commenced, so who knows.

----- Original Message -----
From: "Mat T" <matty_t_001@yahoo.com>
To: <sharechat@sharechat.co.nz>
Sent: Tuesday, July 03, 2001 1:47 PM
Subject: RE: [sharechat] Poor execution


> But you have to pay brokerage on the purchase at 60c.
> So why don't you buy the rights at 8.9c plus the 50c
> which results in a total price of 58.9c insteaqd of
> the 60c.
> --- Christian Mair <product@adidas-ep.co.nz> wrote:
> > Well you pay an additional 50cents to convert the
> > rights into ordinary
> > shares. Incl Brokerage close to 60cents. Sometimes
> > its possible that the
> > price of the rights + conversion = less then the
> > price of ordinary shares.
> > Experienced and quick thinking investors sometimes
> > use this 'glitch' during
> > rights trading.
> > Christian
> >
> > -----Original Message-----
> > From: owner-sharechat@sharechat.co.nz
> > [mailto:owner-sharechat@sharechat.co.nz]On Behalf Of
> > Mat T
> > Sent: Tuesday, 3 July 2001 1:29 p.m.
> > To: sharechat@sharechat.co.nz
> > Subject: [sharechat] Poor execution
> >
> >
> >
> > Why are the Cabletalk shares trading at 60c when you
> > can purchase the rights for 8.9 c. Do you think
> > these
> > brokers are explaining the options properly to
> > clients. If so why are people buying the head shares
> > instead of the rights.
> >
> >
> > __________________________________________________
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> >
> >
> >
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