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LifeisShort · 22 March 2007

Re: AVX - Avexa Limited

Renounceable Rights means the shareholder who has been allocated rights can on sell them on the market to another party. Basically you are getting a freebie by being allocating x amount rights depending on your holding at the time. Those freebie rights shares you can either sell to make a quick profit or you can exercise them by paying for them (55c) and keep them for yourself.

3 veiws of a secret · 22 March 2007

Re: AVX - Avexa Limited

Sorry for sounding so silly -but if you purchased the share on the 22/3/07(today) are you still entitled to the rights issue? Personally I'm not too bothered ,although it is a bonus ,if it comes my way

LifeisShort · 22 March 2007

Re: AVX - Avexa Limited

3 veiws of a secret said:
Sorry for sounding so silly -but if you purchased the share on the 22/3/07(today) are you still entitled to the rights issue? Personally I'm not too bothered ,although it is a bonus ,if it comes my way

Yes today was the last day.....tomorrow shares trade ex entitlement which means you won't be eligible if you purchase shares from tomorrow

3 veiws of a secret · 22 March 2007

Re: AVX - Avexa Limited

LifeisShort said:
Yes today was the last day.....tomorrow shares trade ex entitlement which means you won't be eligible if you purchase shares from tomorrow

Merci!

Go Nuke · 23 March 2007

Re: AVX - Avexa Limited

So paying 95c for them a couple of days ago would be a bad thing compared to todays SP right?

Halba · 23 March 2007

Re: AVX - Avexa Limited

Hi all I have liquidated my holdings in Avexa as of yesterday.

Proven to be a fruitful decision.

Reasons:

*Long lead time to commercialisation ~3 years

*NRTI's old technology - New competition in HIV such as Merck's one

*Highly dilutive impact of placement/rights issue

*High royalties paid to Shire ~15%

Go Nuke · 23 March 2007

Re: AVX - Avexa Limited

You and everyone else selling by the looks Halba...
Thx!

the barry · 23 March 2007

Re: AVX - Avexa Limited

Go Nuke said:
You and everyone else selling by the looks Halba...
Thx!

This one is a marathon not a sprint. I purchased yesterday before the x-entitlement and will not be selling. The four brokers currently have this stock valued between 1.32 and 1.42. That is at a 75 percent chance of success, at present they believe their is an 85 percent chance, adding further value to the valuations. My broker believes that they will be bought out within the next 12 months by one of the majors (between 1.50 and 2). Once people stop selling today to cover their entitlement, you will see the share price rise again. To sell today would be selling yourself short.

Listen to the following link for further evidance of the potential of this stock.

http://www.brr.com.au/event/AVX/1243/21400/wmp/ep4ncgilsk

Go Nuke · 23 March 2007

Re: AVX - Avexa Limited

the barry said:
This one is a marathon not a sprint. I purchased yesterday before the x-entitlement and will not be selling. The four brokers currently have this stock valued between 1.32 and 1.42. That is at a 75 percent chance of success, at present they believe their is an 85 percent chance, adding further value to the valuations. My broker believes that they will be bought out within the next 12 months by one of the majors (between 1.50 and 2). Once people stop selling today to cover their entitlement, you will see the share price rise again. To sell today would be selling yourself short.

Listen to the following link for further evidance of the potential of this stock.

http://www.brr.com.au/event/AVX/1243/21400/wmp/ep4ncgilsk

Its interesting to hear that in previous history 100% of phase 3 trials have made it to market!
And that they found no resistance to thier drug ATC from the HIV virus!
All sounds very positive...but I suppose that was always going to be a given.

Because im new here...is being bought out by one of the major companies a good or bad thing from an investors point of view?

noobs · 23 March 2007

Re: AVX - Avexa Limited

Go Nuke,

Some of the benefits for exisiting shareholders of AVX if it is taken over include:

- A higher stock price (Gen 20-30% Premium)
- The opportunity to fast track the Phase III trials and move to market more quickly
- If it is a large company eg. Glaxo Smith etc. than it has more opportunity to market the drug and get into supply chains etc. because of its size & resources etc.

As for som disadvantages take a look at the PDN and SMM thread to see why being taken over isn't always a good thing even if they offer a premium on the current SP.

No doubt people can expand on this - Hope this helps

happytown · 23 March 2007

Re: AVX - Avexa Limited

Go Nuke said:
Because im new here...is being bought out by one of the major companies a good or bad thing from an investors point of view?

GN,

Depends what your investment is - short or long term (and of course when the potential t/o where to eventuate and assuming you weren't shorting the stock if you were able to).

If you're short term and as noobs says nice premium chance and you were only interested in short term profit, good.

If you're longer term and it is a successful cash t/o you'd walk away with the t/o premium but be locked out of future potential for the products (unless you invested in the co doing the t/o).

Then of course there may be tax implications with cgt to consider if you were looking to hold long term and a short term cash t/o was successful.

These are just some possibilities.

cheers

Go Nuke · 23 March 2007

Re: AVX - Avexa Limited

Thanks guys.
Glad you could point this stuff out to me

I know all about the SMM/PDN thing. Ive got the paperwork in front of me
And i plan on saying no to PDN!

I think Im here for the long term. I dont know enough about trading yet to sell my shares at short notice.
Im just getting experience atm.

Go Nuke · 26 March 2007

Re: AVX - Avexa Limited

Hey Kennas...I see in that Biostock report stuff u send me, they reccommend a "sell" for Avexa now.

How quickly things change from a "Buy" to a "Sell".

Im not selling though.

harriss2 · 3 April 2007

Re: AVX - Avexa Limited

Hello to all,

I am new to sharetrading, and whilst have held Avexa for some time now, know nothing about "rights".

Can someone please answer me; why can you purchase your allocated 'rights' for .53, when they are being sold, purchased for .18 today? I don't understand the implications of this at all.

If the offer is taken up, are they then treated as ordinary shares, or are they still traded on avxr?

clowboy · 3 April 2007

Re: AVX - Avexa Limited

They become ordinary shares.......

AXVR + 53c should equal current SP of AVX.

If you dont convert your AVXR to ordinary shares then they lapse.

harriss2 · 3 April 2007

Re: AVX - Avexa Limited

Thanks for the response Clowboy,

That helped, however, I would still like to know what happens to the shares on avxr being purchased for less than .20 atm. Will they be treated as ordinary shares?

Sainter · 3 April 2007

Re: AVX - Avexa Limited

As the name implies, they give you the right to buy a share, in this case for 53 cents. Think of them as a short term option-you need to pay 53 c to exercise the option (the right) and therefore obtain a proper share. You can choose not to exercise it, but why wouldn't you-you'd lose the price you paid for the right, otherwise.
Cheers!

harriss2 · 3 April 2007

Re: AVX - Avexa Limited

Thank you Clowboy and Sainter,

The penny has dropped. I now understand.

Go Nuke · 4 April 2007

Re: AVX - Avexa Limited

So how or when do you find out how many rights you have?

And the expiry date.

Cheers

harriss2 · 4 April 2007

Re: AVX - Avexa Limited

I'm with Commsec.

Clicked on Position Statement, clicked View Holdings, and there they were.

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