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Note: according to the announcement (which I've stored here) , the last date to purchase shares to participate in this SPP was Friday - however if it supposed to be available to shareholders at record date of 2 Dec and the ASX actually runs T+3 clearance, then Monday purchases should be on the registry at record date.
If not, noises should be made - loud and long - that the ASX always makes sure investors accounts are debited on T+3, but doesn't reciprocate in actual transfer of ownership of stock... typical aymmetry, aka "shaft the client".
Also, I question the probity of announcing an SPP on a date after investors have an opportunity to become shareholders by the record date for the SPP.
But anyway, on to the matter at hand...
SPP - Perserverance Corporation
Gold has broken out decisively (in USD terms) and thoughts of large pullbacks have to be shelved - for the time being.
I remain convinced that it is currently too easy to make money buying Euro and Gold against USD; buying every pullback is something that any idiot can do, and most idiots I know of aren't well off.
That said, the fundamentals for gold are solid - the governments of the western world are playing "race to the bottom" with competitive devaluation (i.e.., they are printing their currencies at mad rates which do not yet show up in "headline" inflation or bond prices, but which are reflected in commodity prices). So long as a gold stock is not a "hollow log", and so long as they don't engage in stupid forward sales, stocks in the gold sector appear poised for further gains.
In this environment, the SPP that was discovered by The Red Menace (OmegaOil), although representing a relatively small premium to last traded price, is in a sector which has a high probabililty of out-performance.
The stock in question is Perserverance Corporation (ASX Code: PSV). The share purchase plan offers shareholders at the record date (Thursday, 2 December 2004 - i.e., next Thursday) to acquire up to $5000 worth of stock at a price of 37c (last traded price was 39c).
Again, a single share is sufficient to become entitled to the offer; the offer is only at a 5.1% premium to the last traded price.
SPV daily Chart - past year...
