Companies on watchlist for capital raising/SPP

[skc]

Sweet, thanks for the heads up! Interesting that theres a rights issue AND SPP.

Desperate times call for desperate measures. AIO and BLY both did the same thing. Although AIO's SPP was only available to existing shareholders, BLY was offered to anyone who joined the party later.

It wasn't clear in the announcement wording which way it would be for BOL.

 

[aroberts1979]

Hi guys,

Any update on this?

What's the best way to find out about SPP's? Just by reading the AFR and anticipating a capital raise?

Anthony

 

[RogueTrader273]

Did people lose interest in this thread? Here's a recent cap raising tip from Street Talk: HGO.

Also is anyone else attempting to build up a big portfolio a la Stephen Mayne to profit from cap raisings?

 

[skc]

Did people lose interest in this thread? Here's a recent cap raising tip from Street Talk: HGO.

Also is anyone else attempting to build up a big portfolio a la Stephen Mayne to profit from cap raisings?

Very different times now and the game has changed somewhat. There are now more re-nounceable issues than before which basically means no over subscription. There also are a lot fewer open window opportunities where ex-entitlement date is after the announcement is made. Also, many big companies already have too much capital on their balance sheet so the need for raisings are deminished. And you prob don't want to touch those pennies raising $1m here and there...

Still have several on my watchlist:

ANZ - If they buy some of the Korean banks
AGK/ORG - One of them might get the NSW electricity privatisation bid and may need additional capital
STO - They need $1B or $2B for the LNG dream but not before FID in Dec I think
AMP - If they bid AXA
NUF - If they are in danger of breaching their convenent and not taken over beforehand
TTS/CWN - If they bid for TAH's demerged assets

Many of these won't be major issues - like may be 2-for-9 rather 1-for-2 at the peak of the crisis.

All in all it means Stephen Mayne's strategy is working less well than before.

 

[awg]

A likely CR for Kentor Gold KGL

Has a mighty chart, and prospects for further big gains due to low cost of proposed mine. dyor

Sweating on the political outcome in Krygystan


Bit late I suppose but they dont get much sweeter than the current KAR SPP,
very nice premium atm

 

[RogueTrader273]

Thanks SKC - I've actually got one share in each of those I've shares in about 280 companies so far, buying 50 at a time and selling soon after. Aiming for a total of about 800-1000.

 

[skyQuake]

A likely CR for Kentor Gold KGL

Has a mighty chart, and prospects for further big gains due to low cost of proposed mine. dyor

Sweating on the political outcome in Krygystan


Bit late I suppose but they dont get much sweeter than the current KAR SPP,
very nice premium atm

Thought they just had one recently at 6.5c? Was a right issue though

 

[skc]

Thanks SKC - I've actually got one share in each of those I've shares in about 280 companies so far, buying 50 at a time and selling soon after. Aiming for a total of about 800-1000.

I hope you have cheap brokerage!!!

280 x $25 x 2 = $14K

 

[adobee]

AKM will need about $5mill to pay for $3 due for projects and ongoing costs.. may raise in HK instead.. Will need Cap raising before end of year

 

[RogueTrader273]

I hope you have cheap brokerage!!!

280 x $25 x 2 = $14K

You pay $25 brokerage? It's $6 with IB, though I've only just started using them for Oz shares. Actually I've made about $10k doing it, as I wait for bullish conditions and sell a few days later (keeping one share of course.) Would have been quite a bit more if I'd been using IB before of course. Stocks which start to drop I sell straight away and keep good performers a bit longer.

 

[awg]

Thought they just had one recently at 6.5c? Was a right issue though

and it went well, price now 17c

The way I read the Investor Presentation 18/10 is that it is saying... now we have the $50M finance from Macquarie, we need another $46M

 

[sammy84]

You pay $25 brokerage? It's $6 with IB, though I've only just started using them for Oz shares. Actually I've made about $10k doing it, as I wait for bullish conditions and sell a few days later (keeping one share of course.) Would have been quite a bit more if I'd been using IB before of course. Stocks which start to drop I sell straight away and keep good performers a bit longer.

From memory you're not elgible to participate in all capital raisings through IB. They are still a US resident. It was discussed somewhere on this forum.

 

[RogueTrader273]

From memory you're not elgible to participate in all capital raisings through IB. They are still a US resident. It was discussed somewhere on this forum.

Do you know where this discussion is? My address is in Australia, so I wouldn't think it should matter if IB is based in the US.

 

[sammy84]

Do you know where this discussion is? My address is in Australia, so I wouldn't think it should matter if IB is based in the US.

https://www.aussiestockforums.com/f...highlight=interactive+brokers+capital+raising

Unfortunately it doesn't matter where you're based, on that IB as a company is within the US. IB doesn't work on a CHESS system.

 

[RogueTrader273]

Thanks Sammy! Sadly it looks like I'm better off sticking with Etrade in spite of their much higher brokerage. Fortunately I haven't bought many Oz shares through IB yet. I notice though that the thread you linked to is over a year old - do you know if their situation has improved in regard to SPP's? I emailed them a few days ago and they assured me that there were no problems doing capital raisings with Australian stocks, though it would have had to be a major improvement.

 

[SilverRanger]

Thanks Sammy! Sadly it looks like I'm better off sticking with Etrade in spite of their much higher brokerage. Fortunately I haven't bought many Oz shares through IB yet. I notice though that the thread you linked to is over a year old - do you know if their situation has improved in regard to SPP's? I emailed them a few days ago and they assured me that there were no problems doing capital raisings with Australian stocks, though it would have had to be a major improvement.

I'm in MBN's SPP with IB, I'v been told (last week) that

IB is registered as a US based company in a single name account with our Clearing Agent and does not register the shares in each customer's name. Therefore, we are allowed to apply for one maximum parcel for the shares purchase plan only. The allocation from the share purchase was pro-rated and depended on how many shareholders subscribed the share purchase plan.

So I would say that until they are properly registered in here the situation probably won't improve. Until then, it's best to go with the next cheapest CHESS sponsored broker (CMC?)

 

[Synergy]

Is 1 share all you need to participate? Are there ever any raisings where there is a minimum holding required to participate?

Also, any estimates as to what percentage of the cap raisings would be on a pro rata basis? eg 1:5.

After reading this I'm considering hanging onto 1 share each time i sell a holding. The thought of the 'paperwork' involved is a little daunting though.

 

[son of baglimit]

plenty of chatter regarding NMS requiring capital raising to assist with refinancing of long term debt. today a investor pres was released, believed to likely be the one for a pres to 'sophistocated investors'.

been burning considerable cash last 12 months due to lack of work.

unsure whether SPP will be available, either way they need a good news story very soon.

 

[RogueTrader273]

Is 1 share all you need to participate? Are there ever any raisings where there is a minimum holding required to participate?

Also, any estimates as to what percentage of the cap raisings would be on a pro rata basis? eg 1:5.

After reading this I'm considering hanging onto 1 share each time i sell a holding. The thought of the 'paperwork' involved is a little daunting though.

Which paperwork are you daunted by? None that I know of, apart from opening extra mail.

 

[gooner]

Which paperwork are you daunted by? None that I know of, apart from opening extra mail.

Add

Registering tax file numbers and bank accounts details with Link/Computershare

Adding up dividends and franking credits for tax returns

Capital gains/losses when you come to sell



Also, most companies are doing renounceable issues nowadays, so the strategy is unlikely to work.....

Was great during the GFC though