mwanahisa wrote:I don't think this will last long. Prepare for the share to come down to the 27 - 30 range cum-rights and sub 25 after going ex-rights.
NB* Split shares have NOT been credited as yet. Guys are just trading the 1/8th currently available.
So far this is panning out exactly as predicted.
Average price for today already tending down towards 25. Last trade at 24.25. I expect the share to trade at levels between 22 - 25 for the duration of the rights issue unless or until we observe the government rights changing hands. The premium for the GOK rights will determine the price at which other folks will be willing to buy rights on the market and the ex-rights price of the share.
However, price will go up once the rights issue closes or if GOK rights are sold at a "high" premium. Short term traders should take positions if they can get in at the lower end of this trading range (22-23.50) to sell in late December/early January.
For long term holders anything below 25 seems like a reasonable buy, although I would hold on to see whether it can go lower.