VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1234[5] ]
Subject: SMH 15/1/03institutional investorsare understood endto the shorting mechanism


Author:
arbitrage conversion shares
[ Next Thread | Previous Thread | Next Message | Previous Message ]
Date Posted: 16/01/03 6:03:51am

Post a new message
ERG - ERG LIMITED


Symbol Last Change
$ %
Open High Low Volume More Information Broker Edit
ERG 0.125 +0.000 +0.000 0.125 0.130 0.115 6,801,427 Profile Chart Customise Broker
Quotes delayed 20 minutes, Australian Market Opens in 9 Hours 1 Minutes (12:59:28 AM:AEDT)





Posted by: rumz Jan 15 2003 10:33:01:733AM
Reply to post #3635 by Pessimist Go to Post #

Previous Respond Message List Next



Market Wrap-up from SMH

Causing quite a stir further down the field was former tech market favourite ERG.

The smartcard operator rose 4c to 14.5c with 37 million shares traded as small broking firms scrambled to cover short positions after an arbitrage position turned against them.

The arbitrage involves the conversion of notes into ordinary shares as part of ERG's capital restructuring announced in November.

At current levels the notes would be converted at a significant discount to the existing price of ordinary shares. This has led investors to "short" the shares in a bid to profit from the share price spread. But institutional investors are understood to have put an end to the shorting mechanism, leaving retail brokers and savvy traders desperate to pick up stock and cover their positions

[ Next Thread | Previous Thread | Next Message | Previous Message ]


Post a message:
This forum requires an account to post.
[ Create Account ]
[ Login ]
[ Contact Forum Admin ]


Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.