Comments on: Fisher & Paykel Rights Issue Calculator http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/ Attempting to convert random thoughts into sentences. Tue, 01 Mar 2011 10:11:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sandeep http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-1331 Sandeep Sun, 27 Sep 2009 05:53:54 +0000 http://www.hartnall.com/?p=336#comment-1331 Hi Kevin What are the taxation implications of taking up the issue at the discounted price for the shareholders? Hi Kevin What are the taxation implications of taking up the issue at the discounted price for the shareholders?

]]> By: Celine_tl http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-961 Celine_tl Sat, 22 Aug 2009 01:29:44 +0000 http://www.hartnall.com/?p=336#comment-961 Hi Kelvin again: The first price on 5 June was $0.75 and the last one was $0.69. So the average is $0.72! Hi Kelvin again: The first price on 5 June was $0.75 and the last one was $0.69. So the average is $0.72!

]]> By: Celine_tl http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-956 Celine_tl Sat, 22 Aug 2009 00:04:54 +0000 http://www.hartnall.com/?p=336#comment-956 Hi Kelvin: Thank you very much for your reply! Now I understood that our only difference is that I assume the closing price on 27 May didn’t reflect the fact the Haier will inject their initial replacement at a price of $.80 later on 2 June. Therefore I turned to check the ex-rights price. However, FPA price on 5 June (one day after the record date) was $.69, according to the data I drew from the NZX Archive. So I have got another question: Did 5 June the ex-rights date? I am not sure if it was because for a dividend payment event the ex-dividends date should be 29 May. Hi Kelvin: Thank you very much for your reply! Now I understood that our only difference is that I assume the closing price on 27 May didn’t reflect the fact the Haier will inject their initial replacement at a price of $.80 later on 2 June.
Therefore I turned to check the ex-rights price. However, FPA price on 5 June (one day after the record date) was $.69, according to the data I drew from the NZX Archive.
So I have got another question: Did 5 June the ex-rights date? I am not sure if it was because for a dividend payment event the ex-dividends date should be 29 May.

]]> By: Kelvin Hartnall http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-950 Kelvin Hartnall Fri, 21 Aug 2009 09:21:23 +0000 http://www.hartnall.com/?p=336#comment-950 The logic behind my calculation uses a different perspective. The dilution that occurs to current shareholders by the placements to Haier are already agreed to and therefore the share price before the rights issue has already priced this dilution in. So the alternative perspective is as follows: If I purchased a share today and then received and exercised the right, then my total outlay would be $1.03 + $0.41 = $1.44 and I would end up with 2 shares. Therefore I have paid $0.72 per share. Since all other information is already priced into the pre-right share price, the ex-right share price should be $0.72. The logic behind my calculation uses a different perspective. The dilution that occurs to current shareholders by the placements to Haier are already agreed to and therefore the share price before the rights issue has already priced this dilution in. So the alternative perspective is as follows:

If I purchased a share today and then received and exercised the right, then my total outlay would be $1.03 + $0.41 = $1.44 and I would end up with 2 shares. Therefore I have paid $0.72 per share. Since all other information is already priced into the pre-right share price, the ex-right share price should be $0.72.

]]> By: Celine_tl http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-935 Celine_tl Thu, 20 Aug 2009 02:31:32 +0000 http://www.hartnall.com/?p=336#comment-935 Hi Kelvin: Just wondered why my calculation is different from yours ... my new price is 69 cents=(290.38*$1.03+$201.23)/725.94. Is it because of the number of digits I have used are less than yours? Hi Kelvin: Just wondered why my calculation is different from yours … my new price is 69 cents=(290.38*$1.03+$201.23)/725.94. Is it because of the number of digits I have used are less than yours?

]]> By: Ash http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-324 Ash Fri, 05 Jun 2009 23:31:49 +0000 http://www.hartnall.com/?p=336#comment-324 Hi Kelvin .. Now that the FPA shares are trading at ~ $0.70 cents and rghts at 0.30 cents, the share price of FPA based on current price post rights issue (i.e. 23rd June) will be around $1.00??? Hi Kelvin .. Now that the FPA shares are trading at ~ $0.70 cents and rghts at 0.30 cents, the share price of FPA based on current price post rights issue (i.e. 23rd June) will be around $1.00???

]]> By: Andrew Lin http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-321 Andrew Lin Fri, 05 Jun 2009 11:20:01 +0000 http://www.hartnall.com/?p=336#comment-321 WOW, your brilliant calculator worked perfectly on FPA again ! The ex right price for FPA was EXACTLY 71.5c !!! One clever kiwi you are~~ !! Do you do shares yourself ? WOW, your brilliant calculator worked perfectly on FPA again ! The ex right price for FPA was EXACTLY 71.5c !!! One clever kiwi you are~~ !! Do you do shares yourself ?

]]> By: Kelvin Hartnall http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-314 Kelvin Hartnall Thu, 04 Jun 2009 23:55:12 +0000 http://www.hartnall.com/?p=336#comment-314 Hi Andrew. When a company does a share-split or a reverse-share-split, it doesn't change any of the investors ownership in the firm - it just changes the number of shares and how much each share is worth. Warren Buffett doesn't believe in stock-splits and has never split the Berkshire-Hathaway shares (they are currently trading for just over US$90,000 per share). However, a number of companies do stock-splits or reverse-stock-splits to keep their shares trading within a particular range, and I'm guessing that this is why Nuplex is doing the reverse-stock-split to bring the share into a normal range for the NZ markets. Sometimes investors see stock-splits as a signal from directors as to the future for the firm, so it would be possible to read into this move a pessimism from directors that Nuplex will get above $1 by itself. I haven't read anything into the move other than bringing the share above $1. As to why 4 for 1, I'm actually surprised that they didn't choose to do a 8 for 1 which could be justified in bringing the number of shares outstanding back to the current level before the capital raising. Hi Andrew. When a company does a share-split or a reverse-share-split, it doesn’t change any of the investors ownership in the firm – it just changes the number of shares and how much each share is worth. Warren Buffett doesn’t believe in stock-splits and has never split the Berkshire-Hathaway shares (they are currently trading for just over US$90,000 per share). However, a number of companies do stock-splits or reverse-stock-splits to keep their shares trading within a particular range, and I’m guessing that this is why Nuplex is doing the reverse-stock-split to bring the share into a normal range for the NZ markets. Sometimes investors see stock-splits as a signal from directors as to the future for the firm, so it would be possible to read into this move a pessimism from directors that Nuplex will get above $1 by itself. I haven’t read anything into the move other than bringing the share above $1. As to why 4 for 1, I’m actually surprised that they didn’t choose to do a 8 for 1 which could be justified in bringing the number of shares outstanding back to the current level before the capital raising.

]]> By: Andrew Lin http://www.hartnall.com/2009/05/fisher-paykel-rights-issue-calculator/comment-page-1/#comment-311 Andrew Lin Thu, 04 Jun 2009 10:40:11 +0000 http://www.hartnall.com/?p=336#comment-311 Hi, thank you for your most clever calculator. Just wondering, you know how NPX is currently trying to "consolidate" their shares so 4 current shares become 1 share. Whats the logic behind this and how come this caused the price to drop so suddenly ? Hi, thank you for your most clever calculator. Just wondering, you know how NPX is currently trying to “consolidate” their shares so 4 current shares become 1 share. Whats the logic behind this and how come this caused the price to drop so suddenly ?

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