davide470:
Two (2) things are involved:

1. The MM might move up the price above the Rights offer price very soon or before the closure of the offering.

2. UPDC might just start a rally after the closure based on it's seemingly lliquid nature and therefore easily "manipulated". Also considering most of it's shareholders bought at c.10NGN and need to average down cheaply.

With Stanbic being the Lead broker, they might have underwritten about 50% or above of the offering and would therefore do "their magic" on the stock.


It's a Green Light from my end, but DD always!

ihedioramma:
Why do you think they can wait sir ? .

Intendy:


cause it MIGHT still go lower after right conclusion but the patience will be really tested

carpenter:


Spot from where I stand.

The price of the right is largely determined by how much they need to raise and not by how much the shares are currently selling in the market. Yes, a Rights Issue will normally be less than the price in the market but it doesn't have to be so. It is a game of numbers for some reasons

1. Current investors depending on how they think the company is doing can decide to pickup the rights or not, if they do...they up their game (more like maintain their current shareholding in reality), if they don't, they dilute their shares.
2. If they decide to pick up more shares (most likely from the market since it is cheaper for example), it is just a matter of time before the market drys up and by then the prices in the market would have risen beyond the 3 naira set for the rights issue. There might also be a long queue for those shares in the market...lol. Most people won't get it before it touches 3 naira.

The main issue would be investors' confidence on the company but one thing is sure...this is a bold move and the company is sending a strong signal on how confident they are with this...time will tell

OBAGADAFFI:


Investor's confidence is the main issue here.

Because i don't see my self queuing-up at the registrar to buy an expensive stock, when i can get it cheaper on the floor.

Lets see what will happen today.

carpenter:


Yeah...but the shares are limited on the floor...it is just a matter of time before you can't even see them to buy except current holders decide to sell at a loss especially those that bought above 3naira. Any current holder that intends to hold the stock already has their stockbroker on speed dial

OBAGADAFFI:


Well just got some more units these morning @ N2.88

fxuser:
Volume leaders

ucap 20m
Oando 18m
Access 11m

ihedioramma:
@Fxuser, were are they? if small bull come now they come out and start teaching . this is small bear come and teach, teachers of NSEMPA . IS ONE LOVE .

ihedioramma:
@Fxuser, were are they? if small bull come now they come out and start teaching . this is small bear come and teach, teachers of NSEMPA . IS ONE LOVE .

ihedioramma:
@Fxuser, were are they? if small bull come now they come out and start teaching . this is small bear come and teach, teachers of NSEMPA . IS ONE LOVE .

fxuser:
Zenith
- time to break N16

Godisfaithful:
To NSEMPAs' family, Brace yourself up...Cash time! Get prepare. And don't forget to pray for our dear country, Nigeria! Please this is not an attempt for scary moment or situations...just a tip!

All the best!!!

spicytayomic:


oga, hope your nairaland account have not been hacked

Godisfaithful:
To NSEMPAs' family, Brace yourself up...Cash time! Get prepare. And don't forget to pray for our dear country, Nigeria! Please this is not an attempt for scary moment or situations...just a tip!

All the best!!!

Mpeace:
I don't understand. Do you mean cash will flow or what. Be clearer.

safepaulooo:

Exactly.... Next week will be bullish