On your R100K you will make a loss if you did not buy for less than 21 cents
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The LONMIN share price thread
- Thread starter snoopdoggydog
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- lonmin shares
On your R100K you will make a loss if you did not buy for less than 21 cents
The company issued an alert with the JSE that this would happen.
You should have conducted research before you invested.
e4et
Expert Member
Why is everyone so worried about the consolidation? Surely the more NB point is the period after the rights issue when we see where the share price will net out? If its above my 32c break even over time then great ( R32 when the consolidation happens ) if not poor me.
At least my intention when starting the Lonmin talk was getting people to be aware of some of the more interesting JSE challenges happening.
At least my intention when starting the Lonmin talk was getting people to be aware of some of the more interesting JSE challenges happening.
How much will i lose?
Nope, consolidation happens at whatever the current price is. So if they are 21c the new shares will be at R21, if they are at 32c the new shares will be at R32 etc. So you will not lose any more than you already had to that point...
I don't understand this.
How can the price go from 21c to 21R or 32c to 32R?
So if I bought 1 share at 21c it will be worth 21R when the price goes to 21R?
Here is an example on your 100k scenario:
You tried to buy R100k shares at 22c. You would have found that they could not have bought all your shares at 22c. The average share purchase price could have been 23c. This being said, after paying your R100k you would receive this number of shares:
R100,000.00 = 434 782 shares @ 23c average purchase price.
Come 18 December, Lonmin will give you 1 share for every 100 shares you own. No you have this number of shares:
4347
They want to take the volatility out of the market and all shares will now be worth R21. This means that your shares will be worth:
R91 287
This means, with the consolidation, you will have lost:
R8 713
Now you need to pray that the shares climb...
You tried to buy R100k shares at 22c. You would have found that they could not have bought all your shares at 22c. The average share purchase price could have been 23c. This being said, after paying your R100k you would receive this number of shares:
R100,000.00 = 434 782 shares @ 23c average purchase price.
Come 18 December, Lonmin will give you 1 share for every 100 shares you own. No you have this number of shares:
4347
They want to take the volatility out of the market and all shares will now be worth R21. This means that your shares will be worth:
R91 287
This means, with the consolidation, you will have lost:
R8 713
Now you need to pray that the shares climb...
Tman*
Executive Member
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Fck me, this has to be a Troll. :wtf:.....
Yep, I think she is trolling.
Nope.
Otherwise they will fck over the shareholders.
Consolidation happens over the agreed upon price of the rights issue
So you're saying it can only and will only be 21R?
NO!
If you bought 100 shares at 21c (purchase price R21), they will become 1 share valued at R21.
If you bought 100 shares at 23c (purchase price R23), they will become 1 share valued at R21.
That is correct.
That's how I understand it.
Of course I am open to correction in fact for my own sake I hope I am wrong.
By the time of consolidation, the share may even be worth 20c, 19c... Imagine the losses
even for those who took up the rights offer...
Won't push up the share price though.