Shares & Derivatives
LMIR 15 Nov 2011
By OT83  •  November 15, 2011
LMIR mother shares at closing: $0.365 LMIR rights at closing: $0.026 Estimated post-rights yield: $0.0326 Mother shares CD: $0.0106 (xd will appear tomorrow on 16 Nov 2011) By doing a simple calculation, (0.365-0.0106)-(0.31+0.026) =  0.0184. It is actually more worth it to get the right shares instead. (Of course this exclude transaction cost.) The interesting thing will come tomorrow where mother share goes xd. Theoretically, mother share will become 0.365-0.0106 = 0.3544 (most of the time, the price will drop more than divy, thus I guess it will become lower to around 0.345) How will the right share react? Disclaimer: The below is solely my guess.   If mother share drop by 1 cent, will right share drop even more? The lowest today is 0.02. My guess it might drop below 0.02. If it ......
Read the full article
By OT83
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance