Club Mulgoa

Saturday, April 16, 2011

RFE

How does the board price the SPP? This one was priced at 32c. I have already applied for the maximum. The closing date is in early May.

On Friday, it closed at 55c. Basically if you have only a few shares but have a spare $15000, you have made a huge profit. But if you have millions of shares, the rise is diluted by your pre-existing stock or if you don't have any cash or only a small amount of cash available, you can only watch from the sidelines. Life can be tough for the extremely rich and the poor.

It is nice to be in the best band of shareholders for a change! But you can be sure nothing is as sweet as it seems. When the SPP profit is so good, often you don't get all you applied for. But I did strike it lucky with AZH last month (SPP = 19c, currently 34c). I received the maximum amount for both portfolio :-) but my wife has already spent the profit off her portfolio :-(

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