Open Orphan Share Discussion Threads

[pierre oreilly] 11/2/2021 16:22

toyin, yes of course we'll drop on going xd. What chopsy didn't make clear is the gain orph will have on any such announcement, probably weeks before the xd. The amount of drop on going xd for an in specie will be a bit of artwork (i.e. a guess of the value of the new company when it starts trading, hence neutral overall) on opening, but will soon settle when trading starts.In other words, the gain will come on the announcement - everything will be neutral after that. (Until the next i s divi announcement).

[klosters65] 11/2/2021 16:11

Sure the share price might drop a bit but I will be surprised if it dropped the full amount of the divi.

[toyin] 11/2/2021 16:05

chopsy, are you sure we will drop? I'm not sure about that.

[toyin] 11/2/2021 16:01

Welcome m5.

[m5] 11/2/2021 15:58

Thanks Toyin.

[rivaldo] 11/2/2021 15:56

That's a great article in the Irish Independent. If you Google a key phrase or two from the intro you can read it for free here:

[chopsy] 11/2/2021 15:53

I'm relaxed about this. Don't forget the underlying will drop when the share goes xd, by the expected amount of the div. So you hold both and remain level overall on aggregate, exposing yourself to the performance of both, or you do something different. There will be plenty of time between announcement of the timetable and xd for you to take profits if that is what you wish. But don't expect the underlying to remain at its elevated heights after xd, it is marked down by the value of the dig, whether it is cash or shares. We benefit in the run up to xd when the monetised value of the proposed dividend is reflected in the underlying.

[chopsy] 11/2/2021 15:48

Yesterday too.

[wassapper] 11/2/2021 15:41

IG Community is down at present :-)

[eeza] 11/2/2021 15:27

IG very good & efficient at taking your money, however.

[toyin] 11/2/2021 15:24

We will reflect what happens in the underlying market and if our Prime broker receives new issue you will as well.

Thank you

David


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[wassapper] 11/2/2021 15:21

OK. More on Spreadbets (IG at least) and divi in specie. Bear in mind the helpdesk guys appear to be somewhwre in Eastern Europe and may not have traded a share in their lives. Try to make senss of this in response to my question about the process ...

Ullas
Hi

Ullas
Please note, Clients get paid cash adjustments to replicate the price adjustments on Lev account and Dividends Non Lev accounts as the clients are the physical holder of shares. Cash is default.

Me
did you really answer my question?

Me
The company I hold will issue shares in another company as the dividend. Why will IG not issue my dividend as an open position in that new company instead of cash?

Ullas
Am sorry for the confusion

Ullas
if you hold the sahre on which ou are eligible to get dividend then IG will credit the dividend into your account

Ullas
Are you with me

Ullas
Am sorry for delayed response

Me
I am here. Thanks

Ullas
Yes

Ullas
I hope I answered the query

Me
you say "then IG will credit the dividend into your account" would that mean the new shares in the new company?

Me
Sorry, it is confusing but it is something that may be occuring more than once over the coming months

Ullas
Yes, please note, You hold a share which if applicable to get paid dividend then the dividend will be paid

Ullas
You can also keep checking some updates on our website

Ullas
Hope that would suffice

... so there you have it. I hope all is clear!

Someone on here last week said they had an IG Account Manager. Perhaps that person can ask someone who knows about these things? But I am coming to the conclusion that all we will receive is cash, but based upon what? I guess the opening price?

[inaminute] 11/2/2021 13:21

As an aside. We talk about CF having half his net worth in this share but that was at the start. He will have considerably more than half in it now.

[arab3] 11/2/2021 13:02

Just dropped ?

[m5] 11/2/2021 13:00

Nail on the head my friend. It's all about the close. It is looking good though to be fair. We are above all the moving averages aswell. It touched the 8DMA and bounced right off it, so that's an extra bit of confirmation. If we hold here next level is 31p which is a confirmed double top, 20th Oct and 9th Feb. Get through that on an end of day basis, should become new support and then flag comes into play and my target is 48p, which its been for quite a while. All IMHO, could well be wrong, DYOR.🤞

[plasybryn] 11/2/2021 12:50

Eskers showing article from Irish Independent on Twitter today
" The greatest gold rush in infectious diseases is just starting ....we have every capability to become a billion-dollar company...Friel is considering spinning some of the non core Pharma assets into a separate listing on the Stock Exchange"
independent.ie

[bearnecessities] 11/2/2021 12:46

How's the chart looking M5, if you don't mind?Has the 28p resistance area now become support? Or too early to tell until we see the end of day close?

[malcolmmm] 11/2/2021 12:15

I am long ,long term here but I have in the past found it useful after a jump in the share price to short these via spreadex for a few points. It doesnt effect the share price as no shares are sold, Spreadex just take the opposite trade, trouble was last time they stopped me out as they changed/ widened the spread and required more money which was annoying as I would have gained quite a lot, live and learn All good fun though.

[toyin] 11/2/2021 12:11

wassapper

I have emailed. I got told over the phone "all corporate actions" are mirrored on a SB, but want it in writing. Will post when I get a reply.

Thanks for your chat.

I am writing this email on the follow up I took over chat.

Unfortunately am still not able to get the update from the CA team. I will send an update after I get one.

If you have any further queries, please do not hesitate to contact us.

Regards,

Ullas
Trading Services

IG

[malcolmmm] 11/2/2021 11:46

Just taken a look, nice little rise I was quite surprised may try to take out a spread bet on Sreadex am thinking the spread will be woeful though

[pierre oreilly] 11/2/2021 11:34

Wass, not sure people want to read this for some reason, but I don't think the info you helpfully posted covers in specie divis, just cash divis and bonus issues ( in the same share). If someone does find out exactly how they are handled, I'd be interested. In donkeys years I've never come across them before. (I don't believe they can simply handle them like a bonus issue in a different new share for several reasons)

[troutisout] 11/2/2021 11:33

Wassapper,
I think that refers to stock issued for the same Company, a bonus issue or stock dividend for that same Company.
It would be very different for stock issued for a new IPO, hived off from the parent company. First the spreadbet company may not want to cover that company, second it may be in another Country so it is rather complicated and only asking them for advice would be sensible as you don't want to miss out by being long on spreadbets.

[stevesham] 11/2/2021 11:28

Hi Wassapper and arab3

I am having the same problem again today, I just have to keep trying