| Author |
Message |
     dug
Member
Username: dug
Post Number: 2460
Registered: 07-2005
Rating: N/A
Votes: 0
|
| | Friday, October 26, 2007 - 12:00 pm: |  
|
Why THEY are called Sophisticated-
because the Company doesn't have to do all this paper work Revelation called a Prospectus if it made a general offer.
so THEY are sophisticated to buy a Placement [Shares Issued By the Company] by the simple expedient of getting the shares at a Discount to current market price.
Does it Matter?
Look the Company is all for it.It can get some millions $$$$,for some fabo Opportunity that SHOULD benefit all shareholders and all they have to do is issue some more shares.
Oh it's called Dilutionary in ya text book,but directors seem to think,us pilgrims will get over it,after all doesn't it say something Good?
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
In a flash Your Directors were able to just let Sophistos[sops for shrt]
Sops just Glimpse the Opportunity of joining you holders in our Company and THEY jumped..etc blah
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
The reaction to Placements by a share can be used to guage quality of management.
or that's what I reckon.
2be continued.
"I hear WHAT you say,
BUT I SEE what you DO"
Zelman Cowan 1970 Canetoad!
|
dug
Member
Username: dug
Post Number: 2461
Registered: 07-2005
Rating: N/A
Votes: 0
|
| | Friday, October 26, 2007 - 12:29 pm: |
|
WHO gets classed as a "Sop"-
Basically millio$aire types connected to the Under Writing Broker.They have Asset Backing and are good4business to Brokers so all us,net only,no frills broker users are ExCluded.
Questions-However are Sops already holders and the placement is simply Top Up to them?
or are they just Stagging?
Going for laying down a $100k plus,getting 750k# and just turning over a scalping 2/3 cents?
Could they be Both?!?
any brokers out there can give us some "inside" word re your average SOP?
or any actual SOP would be excellent like don't take d'double innuendo Sop as anything but short hand!
a Bank Manager even should/could have had a Client SOP.Been one Themselves!
give d'Word,to us poor pilgrims to MaMMon?
never know some of us may Aspire to Sophood.
later.
"I hear WHAT you say,
BUT I SEE what you DO"
Zelman Cowan 1970 Canetoad!
|
philr
Member
Username: philr
Post Number: 273
Registered: 04-2004Rating: N/A
Votes: 0
|
| | Friday, October 26, 2007 - 01:59 pm: |
|
Dug
They are called Sophisticated because they have lots of dosh and the companies like to suck up to them so they will keep buying. They also give them a few freebies along the way to keep them happy.
Phil
** Let blockheads read what blockheads wrote.
Warren Buffett
|
resillent1
Member
Username: resillent1
Post Number: 231
Registered: 10-2006Rating: N/A
Votes: 0
|
| | Friday, October 26, 2007 - 02:50 pm: |
|
Chapter 6D - Sophisticated investor
The Corporations Act requires that an offer of securities or debentures needs prospectus disclosure to investors unless excluded in section 708. Along with exclusions for small offerings, subsections 708(8) to 708(20) of the Corporations Act identify certain persons and circumstances as not requiring disclosure, including the following persons:
* a 'sophisticated investor;' which is defined where:
> the minimum amount payable for securities is at least $500,000; or
> the collective amount invested in the same class of securities adds up to $500,000; or
> a qualified accountant certifies the net asset worth of $2.5 million or gross income for each of the last two financial years of at least $250,000 per annum.
* the offer is made to a person through a financial services licensee where the licensee is satisfied that the person has relevant previous experience in investing in securities; and
* a 'professional investor,' as defined in section 9 of the Corporations Act.
The exemption for 'sophisticated investors' recognises that certain investors are able to protect their own investment interests without regulatory protection. In fact, both industry and such investors may discourage regulatory coverage and consider the imposition of any legislative disclosure to be an unwanted cost and burden.
How Sops act in the market after they have received their allocations is as varied as the rest of the trading universe. A commitment on how they may act is not explicitly a part of the allocation determination, but known stags may find it difficult to get allocation on high demand placements unless they have mates.
|
captain_chaza
Member
Username: captain_chaza
Post Number: 2789
Registered: 02-2003Rating: 
Votes: 2
|
| | Friday, October 26, 2007 - 05:39 pm: |
|
Thanks for clearing up the matter Officer Resilient
Crikey!
Captain Empty-Head used to think Duggie was "Sophisticated"
LOL!!!!!
Salute and Gods' speed
"While we stop and think, we often miss our opportunity." Publilius Syrus, 1st century B.C.
"I believe the future is only the past again, entered through another gate."
Sir Arthur Wing Pinero 1893
"There are two times in a man's life when he should not speculate: When he can't afford it, and when he can." Mark Twain, 1897
|
dug
Member
Username: dug
Post Number: 2463
Registered: 07-2005
Rating: N/A
Votes: 0
|
| | Saturday, October 27, 2007 - 09:56 am: |
|
resillient 1,
is what Sops do with their allocation of placement so varied?surely they can either move the share up/down/or sideways OR have no effect? too much reading seeing d'Light for me,hey?
I think how a share reacts before and after placement can be an indicator/useful thing to track/provide information.
Here's some examples I've noted in recent history.
Share Goes UP After Placement-
AAE quite awhile back was 50centish when a Placement at 30 cents went thru.This was a Massive Placement that more than Doubled the Shares on Issue.AAE was instituting a new business plan at a time when Ethanol was HOT as well as there being limited Listed Competitors.
The effect of the Placement included a number of respectable institutions becoming Substantial Holders.This "reassured" the Pilgrims and price went 50cents to $1 subsequently quite quickly,No Worries.
Up BEFORE the Placement-
This is often seen as happening in Hindsight.
Price Rise-Trading Halt-Announce of Place-Price Drops.
cynics or professionals see any prior price rise as window dressing/manipulation to establish the best placement price.
Down Before Placement-
This may be a sign of "Insider" Activity.Advised by their Broker days/week or so before Announce that a Placement is Happening at current price minus AND one is for an Allocation.The SOP who already holds the share can start selling down to at least the known Placement Price[known to them "exclusively" that is]secure that the number sold is to be replaced in the Placement.
I could go on but what I really want is anyone with First Hand Experience to at least tell some anecdotes about their activities with or as a SOP.
regards.
"I hear WHAT you say,
BUT I SEE what you DO"
Zelman Cowan 1970 Canetoad!
|
dug
Member
Username: dug
Post Number: 2472
Registered: 07-2005
Rating: N/A
Votes: 0
|
| | Sunday, October 28, 2007 - 11:00 am: |
|
Now there is this very strong belief that Placements mainly cause a share price to DROP and this is advocated,proposed that the reason/cause is due to Dilution.
Seeing as it's Sunday,here's a story from my early teachers,they who were Old in the 1960's.
The Market then was read/run strictly by Fundamentals.Mostly by men who wore cardigans,who were in no way pretty flash.They were invariably Master Bean Counters,Top of their Tree Accountants, they were Auditors-the bane of existence to junior clerks who hadn't learnt what Trouble IS until they used green ink one day!!
Coincidentally they had names like Eric or even Roger but now days even John has got d'Chop in favour of Jack.
Anyway the Proper,Auditor Approved Attitude to Placements was-
One held shares in a Company.Ergo you held a fixed percentage of it's Market Capital Value.
because this was d'Way of the Auditor,one calculated your percent holding to 4 or more decimal points ie had 10,000 shares which was a .7639 share/holding of the total shares on Issue[is it 76 Mil or 7.6 mil whatever]
So if a Placement was made,and it wasn't made available to participate in by All Existing ShareHolders?
well,Buy Pressure would/should Eventuate by this calculation
The Placement was say 760,000 shares
so a Proper ShareHolder is "Honour Bound" to maintain their basic/base shareholding percentage
So they have to BUY and price will be driven UP.
Of course,there was "latitude" given towards the Justifications of Selling at this time.
disgraceful,obviously this company lacks Cash Flow and I'm not going to maintain my percent,dash it I'm Going To SELL.
but being Top of d'Tree Auditors?well,they would never say such a thing out loud,Why they'd face the challenge of explaining buying such a cash flow poor share in the first place!!
see in those days,proper shares were fully paid while penny shares were subject to this douver named A Call.
but that's another story....
"I hear WHAT you say,
BUT I SEE what you DO"
Zelman Cowan 1970 Canetoad!
|
|
Auto-Fit Trendlines
