IAG - Share Purchase Plan

[trading_rookie]

Any IAG shareholders out there? What do you think of the SPP to raise AUD125 million to pay for their UK adventures?

The offer of 5.50 an ordinary share (currently trading 6.30-6.35) seems too good an offer to refuse! My concern is history repeating like AMP and it's UK ops going belly up!

Any thoughts?

 

[bigdog]

trading_rookie

You could sell 909 at current SP of $6.34 and buy 909 at $5.50 and be in front of you have any doubt for the coming next month!

Profit of $763 today in the bank

 

[marklar]

You could sell 909 at current SP of $6.34 and buy 909 at $5.50 and be in front of you have any doubt for the coming next month!

Exactly what I did, albeit at $6.20 in time to get into AGF at $1.04. Will wait until mid Jan to decide if I want back in IAG at $5.50.

m.

 

[trading_rookie]

You could sell 909 at current SP of $6.34 and buy 909 at $5.50 and be in front of you have any doubt for the coming next month!

Profit of $763 today in the bank

Hmmmm bigdog that’s what I should have done with my TLS shares and bought double the instalment warrants.

But here I don’t know if it seems worth it. AUD763 seems like nothing once you take out the CGT, brokerage and transaction fees.

Also, I can’t help but think a stock will become devalued if ‘extra’ stocks are issued – they wanna raise AUD 125 million @ AUD5.50 a share that’s 27.7 million shares they’re pulling out of the air. I mean no country ever got out of a tight squeeze by printing more money! Doesn’t the same prinicple apply to a company?

Exactly what I did, albeit at $6.20 in time to get into AGF at $1.04. Will wait until mid Jan to decide if I want back in IAG at $5.50.

Hey marklar, reading your post I’m assuming you’ve gotten completely out of IAG. If that is the case then the SPP is only being offered to existing IAG shareholders and the options are 1 or 4 parcels – 272, 545, 727, or 909 shares.

 

[marklar]

Hey marklar, reading your post I’m assuming you’ve gotten completely out of IAG. If that is the case then the SPP is only being offered to existing IAG shareholders and the options are 1 or 4 parcels – 272, 545, 727, or 909 shares.

Nah, I had just over 1000 shares, so I left myself a couple of hundred; mainly to remind myself to track of the share price before SPP, but also so that I was still an existing holder. My cunning plan might come unstuck if it's oversubscribed and they decide to scale back allocations based on current holdings.

m.

 

[Rainmaker]

Do people think there will be a drop below $5.50 come 5 February, when the shares under the SPP begin trading and many SPP subscribers dump their stock? Because as it currently stands, it's almost an 18% gain...

 

[theasxgorilla]

If a large number of SPP participants dump their shares on Feb 5th then yes, the share price will go down...but will we see $5.50? I'm not betting on it. If we do, I might buy more

 

[Pager]

Do people think there will be a drop below $5.50 come 5 February, when the shares under the SPP begin trading and many SPP subscribers dump their stock? Because as it currently stands, it's almost an 18% gain...

My

Maybe very few will dump there stock ?, its a bloody good business got a good yeild and the share price is rising .

What happens then ?, maybe it will move higher.

Very short sighted to sell on the fact the SPP is an 18% short term gain, look at it as confidence in the stock.

I certainly wont be selling mine, but then again im a long term investor in shares rather than a trader.

Cheers

Pager

 

[mmmmining]

If a large number of SPP participants dump their shares on Feb 5th then yes, the share price will go down...but will we see $5.50? I'm not betting on it. If we do, I might buy more

Mon and Dad investors will never lead the market;
GranPa and Ma will be more than happy to sell it to David T.
There are over 1 million IAG shareholders. If everyone can get the max $5000 worth of shares, IAG will raise $5b dollars! But IAG only need $125m

 

[barney]

Hi Lads, My wife owns a few IAG .... I have told her to be prepared for the slight "sell off" . The traditional mid-late Feb market downturn coupled with the spp end date could see IAG drop to maybe around $6.25, but that is speculation on my part, and who really knows? ..... i think the fact that the sp has risen steadily since the spp ann. is a sign of long term strength ......... I hope it doesn't retrace at all, but I fully expect a substantial short term correction .... its just human nature (greed:- ..... take the easy profits .......fear:- ... "if the sp starts to drop, I don't want to miss out on my profits, so I'll sell")

Also the momentum on IAG seems to be dropping off a little atm, as are a lot of stocks.

The last 2 years have been a carbon copy of each other on the all ords, so the Feb downturn (followed by a steady upturn) looks highly possible again this year .......... All the best to holders, Barney.

 

[Rainmaker]

Mon and Dad investors will never lead the market;

I agree, Mom&Dad folk are in it for the long term. The institutional placement raised $750m so maybe it will be traders/funds that lead the sell off.

 

[laurie]

Don't forget mum & dads are in for the dividends and most are retired

cheers laurie

 

[marklar]

I notice my CHESS holding has been updated this morning, I applied for the maximum and I got:

246 shares.

Bugger!

m.

 

[dutchie]

G'day Marklar

Same here.

I emailed them querying why the current stock holders did not get a chance to buy the new share allocation BEFORE the institutional buyers.

Will let you know when I get a reply.

Cheers

Dutchie

 

[Rainmaker]

So it looks like the sell-off did not eventuate

Just a small query, is there anyway to transfer these issue-sponsored shares to something like a CommSec trading account? (the reason I ask is, if you want to sell the issuer sponsored shares through Computershare, which is done via e-trade, there is like a $50 broker fee).

Failing that, is it possible to transfer ownership of issuer sponsored shares?

 

[Pager]

Another example of the small shareholders getting shafted .

See all the institutions got full allocations when they had there placement offer also at $5-50, may have been a few months ago when IAG was around that level but shame on the directors of this business for the way the small investors have been f*#ked.

 

[marklar]

Just a small query, is there anyway to transfer these issue-sponsored shares to something like a CommSec trading account?

Yes.

You will need a form from your broker for exactly this. Your name & address for your issuer sponsered shares will need to match with what CommSec have on record for you, if they don't match you'll need to get a form from IAG to change your details with Computershare first.

The process took me about a month & 4-5 faxes with IAG, Computershare & NOLT.

m.

 

[drmb]

So it looks like the sell-off did not eventuate

Just a small query, is there anyway to transfer these issue-sponsored shares to something like a CommSec trading account? (the reason I ask is, if you want to sell the issuer sponsored shares through Computershare, which is done via e-trade, there is like a $50 broker fee).

Failing that, is it possible to transfer ownership of issuer sponsored shares?

If you are a Comsec client, there is an off market trading form which you can download off the Comsec site (it's in the Contact Us and Help section, look for the yellow bar at the top Request Forms) fill it in, sign it and I think when I used it took about 3 days only and no charge. Make sure the names and adress are IDENTICAL or you'll be messing around for a while getting the changes done by IAG. The shares should then appear on your comsec list when you check holdings. Sell it as you would normally.

markla - Re 246 shares, yes I was pissed off with getting a piddling little anount and then having to bank the cheque, bet the instos didn't get 246 shares each, well I think IAG doesn't give a toss about the small holders, so what's new??

 

[trading_rookie]

Talk about a price slump AUD 6.50 before the SPP offer and closing today at AUD 5.81...

 

[milionerka]

Yes, regarding the price slump, I am frustrated by it too...Any other possible reasons?
I believe they are about to pay some dividends in mid-April, so after that we can expect even further price slump ...
I hope they will recover in the long term, although ....(?)