Friday, March 1, 2013

Albedo

Albedo: is in top volume this session. Last traded at 5.6cts, -51.3% , in volatile trade thus far. The stock goes ex-rights today, on the basis of 4 rights shares at issue price of 0.5 cts, and 4 free detachable warrants with exercise price of 0.5 cts, for every 1 Albedo share. Based on yday's close at 11.5cts, the theoretical ex-rights price is 2.7 cts, ie. (11.5 + 4 x 0.5) / 5 shares Including the effects of warrants, the theoretical ex-rights cum warrants price is 1.72 cts, ie. (11.5 + 8 x 0.5 ) / 9 shares. This means, despite the stated drop in Albedo share price, on a net-basis adjusted for corporate action, it is actually up between 200-300% overnight. The rights shares are still pending credit into the CDP account, and would result in a 4-fold boost in number of shares out. The interim share supply-demand imbalance may be one of the reasons for the current share price volatility.

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