SPP and Entitlements

Not all are worthy of attention. Why would you buy into any rights/SPP issue if the market price is cheaper?

This AM, after begging for cash from the Finance Controller, I put in the money for ALK, WCL, EXR (all rights) and BUL (SPP). The biggest chunk is for BUL because of the big disparity between the current high share price and with SPP and you can apply for up to a maximum of AUD$15,000.

I ignored GOA's SPP because it is cheaper to buy the shares in the market (which I did). At the moment, AMX share price is below the placement and SPP price! Those sophisticated investors and institutions must be pissed off about it! Likewise, I topped up DRA on the market because the rights issue was more expensive by a few cents. However, the share price of DRA has been falling! Incredible. DRA is a gold producer with many good announcements, yet investors are selling.

There are more rights issues and SPP coming. It is important to weigh carefully. Sometimes, a cheap offer could end up a disaster while others can fly. A good example was RSL. I didn't buy but it soon jumped AFTER the close of the SPP offer. I can't buy everything as these issues can suck up a lot of spare cash.