fredag, december 07, 2018

SAAB's new stock issue is more expensive than the stock!

Rights to buy the new SAAB shares are going for 30kr now and you need 4 of them to buy a share, which will then cost 225kr. But if you are a current owner, you have these rights already. So if you sold 4 of them, you would earn 120kr, which you can then use to buy a share on the market which currently costs 340kr. Minus your earnings from your rights (340kr - 120kr), each share would cost you just 220kr. A 5kr discount per share. This doesn't make much sense for current owners.

Usually the stock price stabilises around the new emission price. I have to say SAAB shares have performed very suspiciously ever since the TX win. First it didn't go up an awful lot as one might expect, it then collapsed by a ridiculous amount after the new issue announcement, and now it is still in decline? This stock is behaving very suspiciously. One unknown that we do not know since the TX win is exactly SAAB's share of the deal and how much profit they expect to make. This may be what the smart money knows that we do not know and why SAAB AB share price is not performing very well.

I have sold half my TR's already and considering what to do with the rest.

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