EDN - Elkedra Diamonds

[ta2693]

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?

 

[ta2693]

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.

 

[rub92me]

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

 

[ta2693]

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.

 

[ta2693]

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.

 

[rub92me]

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...

 

[ta2693]

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?

 

[alankew]

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

 

[Sean K]

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...

 

[ta2693]

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.