huh?

[zindc3]

Please can some one tell me what does it mean. this nill paid lettter thing. I hold some snu shares and now on my porfolio i own 4700 of snun. please help.

[SimonPB]

they gove you the right to buy one new SNU per SNUN at a set price .. you can take up the offer or sell them in the open market .. and this all has to happen before the expiry date .. the call center will be able to give you prices and dates

[zindc3]

so say i sell the snun back into the market. whats gonna happen to snu. now that its down 35% today. Is it likly to go up from here or now with the nill paid letter is it buggerd. please advise. no idea.

[SimonPB]

it is down today because you got the nil paid letter .. and you net holding of both should be largely the same .. the future, well that is more complicated as my crystal ball is in for repairs ..

[zindc3]

well i worked out if i convert the nill paid in to noraml shares my avg comes down alot and can get out 0% loss. if i sell the nill paidat 87c then sell my shares i loose R1000. Just no idea whats gonna happen to both of them. Expires on friday.

[SimonPB]

the nil paid will disappear .. SNU another story entirely ..

[ClintD]

I think SNU is a good share, and is looking on the up. I bought in at R3,90. I calculated last week that the rights issue should be able to be resold at R1, and as long as the share price is above R2,44 I will break even. There has been very little sale of the rights issue possibly indicating that the other shareholders feel the same as I do, and are happy to take up the rights! Think there is some good upside in this company - especially with the coal shortages there are going to be with the new power stations to be built by Eskom - so you must decide whether to hang in or not!!!

[#8]

Hi, please tell me if I buy 100 null paid rights does this allow me to get 100 shares or the 149 as specified in the sens?

[SimonPB]

100 .. the 147pwas as per a holding of the underlying on LDT .. conversion is 1:1 ..