# EDN - Elkedra Diamonds



## rub92me (14 February 2007)

I've been following this one for the last month or so (not bought yet), looking to buy in to a diamond stock.
It is clearly in a downtrend the last 6 months, but I can't really figure out why.
They started producing last October, revenues are coming in. They've had some delays here and there, but nothing disastrous or more than you would expect from a start-up and yet the share price keeps getting hammered   The last announcement from another sale that appeared within previous estimates, caused another sell-off, so holders appear to expect a lot more ... Anybody that knows their diamonds care to shed any light on this. Maybe it is a dog in sheepskin after all?


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## alankew (29 March 2007)

Rubme(!!!!)might be worth taking a look at what has happened with KOR and SAU with regards to their U spin off.I have posted the below message on the ARM thread
With the current demand for U shares and particularly U spin off(Korab resources,SAU etc) would imagine these will run a fair bit as people position themselves to gain priority allocations for the IPO.Also posted same on EDN and  as same may apply-I hold all 3


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## stockman (20 April 2007)

IPO Uranium SPIN OFF will most likely be next week. If you want priority into this Uranium Float buy now to get priority allocations via EDN. I'm guessing today or Monday will be the last days according to my resources.

Good Luck

I'm in.


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## rub92me (20 April 2007)

Well, that would explain some of the games that we could see played out over the last week or so with the EDN price. Every time it looks like it is going to run, small parcels are dropped to peg it back. Despite this it is climbing up. I'm in as well, so watching with interest how things will unfold


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## stockman (20 April 2007)

*EDN - Priority For Uranium Float*

EDN IPO for its Uranium Float is expected early next week. Must purchase EDN to get priority. Float will be tightly held name is Uramet i've been told.

Good luck. Hopefully we get this one.


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## rub92me (20 April 2007)

Should get some of the benefits anyway, because in their previous announcement they said they had the intention to keep a significant stake of the new float, which would be returned to EDN holders (in specie) at a time to be determined.


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## stockman (20 April 2007)

Yer they are keeping a majority stake. I'm only in it for the float though I think the float will be up 100% + given where they are etc...

This is the way to get priority allocation I think it will be based on the number of shares you own or a minimum of 1000 shares.

Not too long to wait though which is good.


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## Halba (20 April 2007)

stockman said:


> IPO Uranium SPIN OFF will most likely be next week. If you want priority into this Uranium Float buy now to get priority allocations via EDN. I'm guessing today or Monday will be the last days according to my resources.
> 
> Good Luck
> 
> I'm in.





Hi stockman. How many EDN will we need to secure a priority allocation? If Monday is the last day I better get in on Monday! Was out today.


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## alankew (20 April 2007)

Halba not sure if that info has been released but from shares.com(sorry Joe)there is talk of 1000/$500 being sufficient Think this is just guesswork though.


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## rub92me (20 April 2007)

That 'guesstimate' looks reasonable; it's typically around the $500 mark for these type of spin-offs...


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## Halba (21 April 2007)

alankew said:


> Halba not sure if that info has been released but from shares.com(sorry Joe)there is talk of 1000/$500 being sufficient Think this is just guesswork though.




Agreed it is a good chance if you buy $1000 worth I guess.


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## alankew (21 April 2007)

I also think that getting into the parent company just after the ann of spin off is a good idea as you should get the benefit of othe people doing the same thing-recent one was KOR could of got in at about 70c(actually around 50ish at the time of the China/US worries)Shares are now at about $1.30.THR is another that seems to be benifitting from people buying for priority


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## rub92me (23 April 2007)

Announcement for spin-off as expected. Note they haven't picked the holding date yet for entitlement, but it has to be soon. Not sure that's entirely kosher, but hey I'm already holding, and I'm not selling until I know


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## Halba (23 April 2007)

Pro rata priority? Looks rubbish this one. Probably will be lucky to get $100 worth of the IPO.


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## rub92me (23 April 2007)

Halba said:


> Pro rata priority? Looks rubbish this one. Probably will be lucky to get $100 worth of the IPO.



Just buy a million shares mate, it's a free market


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## Halba (23 April 2007)

Huh? Why would you put that sort of amount, thats $500,000.


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## ta2693 (23 April 2007)

I think I will be out tomorrow. Pro rata, kidding me.


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## ta2693 (24 April 2007)

Personally, I do not like diamond company because I know the new technology will put out these diamond company out of business. But this one is very special it has a lot of investment banks as major shareholders, like citicorp, credit suisse. fmr corporation. The cost of my holding this one is 0.545 very similar to the cost of those investment bank. Although I do not know why they love this one, I think must be a reason other than the uranium spin off.


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## rub92me (24 April 2007)

Synthetic diamonds have been around for a while, and they're not a threat just yet to natural diamonds. Plenty of time to make money on this one in my opinion.


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## ta2693 (24 April 2007)

It looks like people with deep pocket love Pro rata basis very much.


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## ta2693 (29 April 2007)

*for anyone who hold less than 2000 shares*

How many shares do I need to have to secure a $500 spin off issue on UKA?
If I can not get enough shares to entitle $500 UKA, Does that mean I had better sell before record date?


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## ta2693 (4 July 2007)

Free money. Watch out. 
EDN is trading at 44c. I have had around 10% of my portfolio. for risk control reason, I can not have more.

EDN was offer by VAA for 0.52 VAA for 1 EDN.
VAA is traded on TSX at about 0.92 Canada dollar

So EDN is valued at 0.4784 Canada dollar

The exchange rate of Canada dollar to Australia dollar is 1 to 1.1
That means the offer is 0.5265 Australia dollar per share.


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## rub92me (4 July 2007)

Hehehe. Yeah incredible isn't it. I managed to get more at 43 cents. And you need to add to that the in specie deal which equates to another 5-6 cents per share so really this should be trading above 55 cents. Go figure


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## ta2693 (4 July 2007)

I find the ASX market at present is less efficient than ASX 3 months ago.
I still do not understand why the delay happen. and what makes the ASX less efficient.
Market's react to news is delayed about 1 day.  i.e. the information in news will be absorbed into the price in 1 day. that gives trader opportunity to make money by buying when good news announced and selling the day after. 

I think EDN is another example of delay. let us wait and see what is going to happen tomorrow. 
Anyway, if you got it at 43c, the chance of losing money on this one is nearly impossible.


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## ta2693 (4 July 2007)

I do not understand why anyone will sell it now at 42c.
If it can not get above 50c. I will hold it and sell it in TSX for some Canadian dollar and use it for my next traveling in Canada.


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## rub92me (4 July 2007)

I've given up trying to understand the market ta2693. I'm with you on this, I'll be holding out to at least the Uramet in specie distribution. Obviously need to track how the VAA price will react to this merger deal on the TSX. If it tanks then we may need to rethink, but otherwise this should work out okay. The only other risk I can think of is the CAD/AUD FX rates going off in a big way, so I'll be tracking that as well...


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## ta2693 (17 July 2007)

I do not understand why in Canada it is traded at ca$1.00 for VAA. the conversion rate is 0.52, so EDN is supposed to valued at around $0.57 to avoid  arbitrage happen. 
BUt, right now it is $0.42 on market. If My IB account is ready, I will short a lot VAA on TSX and buyback EDN on ASX which makes me fortune. 

why does the price discrepancy happen? Do I miss something?


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## alankew (18 October 2007)

Thought about posting this in the breakout/down thread but was too scared of Kennas.EDN have sent out another ann re their delisting from ASX and merger with a canadian company(forgot the name).Reading the ann think this will put off people buying and also cause some holders to sell as they cant be bothered with the paperwork etc.As ta mentioned sp should be a lot more than it is but think these negatives are having the opposite effect


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## Sean K (18 October 2007)

alankew said:


> Thought about posting this in the breakout/down thread but was too scared of Kennas.



 LOL :

Break up, or down?? 

You could have put it in there with a chart and we could have discussed it and there'd be no dramas. All anyone needs to do is paste one in and say why it might be a potential, or breakout.

In this case, I think it might have a little way to go....needs to be closer to the green circle perhaps...for a start. 

Looking at the depth, I have some other concerns...


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## ta2693 (18 October 2007)

I suggest we discuss VAA(TSX) for predict the price movement for EDN.
 VAA is going to acquire EDN, so their price should be closely related.


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