AFF Member Stock Discussion

[rogerkambah]

I was able to get some nab shares early but got scaled back a lot.

Care to expand on this.
My understanding was that the offer only opened today.

 

[Freq Flier 2013]

Care to expand on this.
My understanding was that the offer only opened today.

They were open to institutions and sophisticated investors. Share issues and ready to trade on the 1/5

 

[rogerkambah]

They were open to institutions and sophisticated investors. Share issues and ready to trade on the 1/5

Yes, Thanx.
Can you say what the level of scaleback was?

 

[cove]

I lodged 5 SPPs for NAB today as we had 5 separate shareholdings. The NAB offer is pretty low priced but the future is a bit clouded by bad debts from business failures.

 

[Quattro]

I lodged 5 SPPs for NAB today as we had 5 separate shareholdings. The NAB offer is pretty low priced but the future is a bit clouded by bad debts from business failures.

Lodged mine today also. More of a why not/good value proposition for me. Their loss, my risk.

 

[burmans]

Yeah I’ll be applying for 3 holdings but all indications we will be scaled back to almost nothing!

 

[Freq Flier 2013]

Yes, Thanx.
Can you say what the level of scaleback was?

70% scaled back for me
Ie I only got 30% of what I wanted

 

[burmans]

The SPP is likely to be scaled back even more, given the SPP is for $500M vs $3B for the institutional. To quote Switzer "The issue for retail shareholders is that the SPP is currently only $500m in size. If 25% of NAB shareholders elect to take part, this means an average allocation of just over $3,500 each. If 50% of shareholders take part, an average allocation of just $1,754. "

Given current prices I'd say 75% will takeup, so we'd be lucky to get just over $1K per shareholding unless the directors accept oversubscriptions but even if they double/triple its still nothing like the 30K you can apply for.

 

[Dr Ralph]

The SPP is likely to be scaled back even more, given the SPP is for $500M vs $3B for the institutional. To quote Switzer "The issue for retail shareholders is that the SPP is currently only $500m in size. If 25% of NAB shareholders elect to take part, this means an average allocation of just over $3,500 each. If 50% of shareholders take part, an average allocation of just $1,754. "

Given current prices I'd say 75% will takeup, so we'd be lucky to get just over $1K per shareholding unless the directors accept oversubscriptions but even if they double/triple its still nothing like the 30K you can apply for.

Have a look at past SPP's even for stocks at a good discount, 75% take up is extremely unlikely.

I expect the take up of the offer to be much lower than 75%.

 

[cove]

The NAB directors would be dopes if they did a scale back when they need a bigger war chest to deal with loans going sour. They have an updated board of directors so let’s wait and see.
i was scaled back on Webjet and was rather annoyed with them.

 

[burmans]

Have a look at past SPP's even for stocks at a good discount, 75% take up is extremely unlikely.

Frankly I think this is arguing at the margins just for the sake of argument. I based my 75% on the fact that unlike some of the others, NAB is a company that is almost certain to survive the current situation (given government policy and historical support of banks) and unlike many of these other SPP's the market consensus is that you should participate.

But regardless of whether its 75% or 60% or 50% the fact is you are going to get scaled back considerably if the directors stick to their current advice. If you've put $30K in I suspect most investors will be annoyed, regardless if they are getting $1754 of shares or $1166 worth in the end. The difference in the refund amount $33.3K or $33.7K isn't material really in this context.

 

[Dr Ralph]

QBE SPP looks good. I'm going in today.

 

[Quattro]

When do we expect to hear back regarding the NAB SPP and how much we have been allocated?

 

[burmans]

About 3 days after it closes in 2 weeks

 

[cove]

The share purchase plan is scheduled to close on May 22nd so a few days after that.
Push Pay surged today. Their report is a good read.

 

[Gold Member]

Push Pay surged today. Their report is a good read.

I offered an insight into PPH on this very thread a few weeks ago (see my quote from post 422 below). Did anyone else get onboard? They are forecasting a 100% EBITDAF increase. That’s incredible growth, even for a tech company.

Bought into Pushpay Holdings (PPHJ) at $3 today.

Management issued a profit upgrade today (yes you read that correctly, UPGRADE) in light of Believers increasing donations in the last few weeks. Perhaps donators hope that a larger donation will deliver increased COVID immunity from God.

PPH has a strong balance sheet with negligible debt and a strong earnings forecast which will seemingly accelerate as donations increase when COVID hits the Bible belt in the coming days/weeks.

 

[cove]

Yes but I was already there with PushPay.
i have Kogan too.

 

[moa999]

Yes but I was already there with PushPay.
i have Kogan too.

I've got some confidence in KGN (despite not liking the CEO or some of their products) as well as TPW in the furniture sector as more purchases shift online.
WES also bought Catch Group.

But the valuations in the payment sector - APT, Z1P, SPT and even the very niche PPH scare me.
Just look at Flexirent FXLs performance over the last ten years. It was a market darling only a few years ago.

 

[cove]

I took up a share purchase plan for Credit Corp this evening which is CCP code.

 

[Kane]

I did the same, $12.50 looks like a good discount.