Today Ellies is 82c a share and the new shares 110c(Rights offer) a share... Do you buy new shares or current shares @ 82c ? If you buy now @ 82c you will make a larger profit if the price go's up? Any advice on Ellies would be appreciated.
sorry this is a after thought...I did hear on the news the other night that some court case or decision was taken, that now means south Africa can continue to change to digital...I don't know this stock so well but maybe they will supply the set boxes???...not sure
i am keen on holding on to this stock or buying more when it dips below 80c , i know this company has potential and there is business out there for them. after the 2nd rights issue everyone has become disspondent, fair enough, but this is the opportune time to take the risk everyone else dont want to, people who made the most money in this game are the people who went againts the market trend, thats where the biggest profits lie. its all about your risk appetite , i myself am a aggresive investor. my vote buy this share between 70c-80c and keep it
I'm with luqiewp. I still have high hopes for the company. If e-tv doesn't appeal the decision to not have encryption on the set-top boxes (which would just be a waste of money anyway) they should be able to get rid of a lot of stock and release working capital. My concern initially was that they didn't have liquidity, but with the rights issues and re-structuring of debt, they should be able to hold out for as long as necessary to be able to sell the set-top boxes. I also like the consumer division more than the megatron business. Going to sell that when they split. I do still have one concern though. It's the zero cost collar hedge that the directors/CEOs took on the share. Basically, when they took these derivatives out they would have made a lot of money if the share price went up significantly or down significantly. As we know, the share price went from around R7/R8 to 82c now. Which means these guys have hit paydirt. And they keep making money as long as the share price remains depressed. I think the last tranche of payments happens at the end of July. Surely it must be illegal or at the very least unethical for somebody so high up in the company to be benefitting from the share price being lower? Am I alone in thinking this?