Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
Tim the Red Menace (aka OmegaOil) is a genius at sniffing out Corporate action based short-term opportunities.
In the past he has broadcast these fairly liberally; in future, as Paul Reiser might say... not so much.
Today's is a corker.
Virax Holdings (VHL) announced a Share Purchase Plan today; as written it appears to be an opportunity to trouser $600 with little risk.
It's raising $4 million of capital by offering parcels of a minimum of 5,000 shares up to a maximum $5000 per shareholder, priced at 40c a share.
The only "catch" is that you have to be on the register on December 10th. the shares issued under the SPP will be acquired free of any brokerage.
The stock last traded at 51c; in order to be eligible for the offer, you need only be a shareholder on December 7th (to ensure that the registry clears your shareholding before December 10th)... there is no minimum shareholding requirement to participate.
That means somebody who purchased, say, ONE share, effectively buys an option to buy $5000 worth of VHL at 40c on or before December 23rd.
The risks are obvious - apart from potentially not getting the full allocation as a result of some requirement to scale back the offer (if it was driven by over-subscription, that would augur well for any shares purchased anyhow), the share price could fall from here.
Just a hint; I don't mind how widely you broadcast the SPP, but if you've only heard about it here it would be nice to point people to this piece.
If you exploit this opportunity I would think that you would be seized by a charitable urge... in a fit of observation you would notice the PayPal doover in the top left hand corner. Nobody will have given anybody any investment advice and the world would writhe on its axis at the synchronicity of it all.
There will be plenty of these - Timbo has a terrific record of sniffing them out, and I've yet to see one that didn't work. You will see them here the second he gets wind of them - thus saving folks the hassle of looking through all the Corporate Actions announcements.
VHL (ASX:VHL) Daily Chart
