Westpac Share Purchase Plan

[baer]

This thread could have easily been posted with the subject "Futures for beginners" but some other information may come out that is more generic in information.

I have received a Share Purchase Plan (SPP) offer from Westpac (WBC) to buy up to $10,000 in shares at the lower price of $16, or the weighted average share price. The shares will be alloted on 11 February and I have to make a decision by 30 January.

I won't be making my decision until closer to January 30, but wanted to see what the futures market was pricing WBC at around 11 February. To find out, I found this page 'Warrants & Structured Products prices' for WBC at the ASX website: http://www.asx.com.au/asx/markets/WarrantPricesSearchResults.jsp?DataSet=WBC&State=127

However I don't know if this data helps me, or if I should be looking at something else. Any suggestions?

 

[So_Cynical]

This thread could have easily been posted with the subject "Futures for beginners"

Another option would have been "Westpac asks share holders for money"

 

[cutz]

This thread could have easily been posted with the subject "Futures for beginners" but some other information may come out that is more generic in information.

I have received a Share Purchase Plan (SPP) offer from Westpac (WBC) to buy up to $10,000 in shares at the lower price of $16, or the weighted average share price. The shares will be alloted on 11 February and I have to make a decision by 30 January.

I won't be making my decision until closer to January 30, but wanted to see what the futures market was pricing WBC at around 11 February. To find out, I found this page 'Warrants & Structured Products prices' for WBC at the ASX website: http://www.asx.com.au/asx/markets/WarrantPricesSearchResults.jsp?DataSet=WBC&State=127

However I don't know if this data helps me, or if I should be looking at something else. Any suggestions?

Yeah, i've been thinking about that one as well.

Unfortunately i don't believe there's a method of pricing WBC for the 11Feb but someone else could correct me on this, plus you may be able to pick them up cheaper on market.

The WBC offer doesn't seem as tasty as the recent QBE offer but that was only a max of 5K worth.

 

[baer]

I agree that it isn't very tempting at the moment, the share price is down around $16.50 now. It was over $17 when I started the thread.

Still interested in how the market is pricing Westpac around mid February. Hopefully someone will chime in with some advice before the end of the month on future price analysis.

 

[jet328]

Still interested in how the market is pricing Westpac around mid February. Hopefully someone will chime in with some advice before the end of the month on future price analysis.

The best indication of where the market thinks the WBC share price will be in 20 days time is the CURRENT share price. I agree that its not that tempting at moment. Just wait until closer to the cutoff day as with Bpay you should only have to make up your mind the day before

 

[roofa]

I agree that it isn't very tempting at the moment, the share price is down around $16.50 now. It was over $17 when I started the thread.

Still interested in how the market is pricing Westpac around mid February. Hopefully someone will chime in with some advice before the end of the month on future price analysis.

If you are to go by NAB and CBA just recently you should be able to get the stock for under $16 in the very near future, I won't be taking up the WBC offer. The NAB offer was for $20 and I got some at $18 something prior to the close.

 

[vincent191]

I already hold Westpac shares. What I did was sold 600 Westpac shares last week at $17 and I will be applying for my maximum new Westpac shares at $16 to replace the ones that I have sold.

The risks that I have taken are:-
1.) Westpac shares will go higher than $17 before the 11 Feb.
2.) I may not get my maximum allocation of new Westpac shares.

Anyway, I do not consider the above as unfavourable risks. That is why I sold my Westpac at $17 knowing full well I can replace them at $16 or less.

And even if I do not get my full allocation of new shares I am quite confident that I can buy them on-market on the 11 of Feb at or near the $16 mark.

I reason that I have all to gain and nothing to lose. Do you all agree???

Cheers