Re 10:1 rights -- SFE has often done 5:1 with its rights offerings, but WRT ICGE holdings, I don't think they own a big enough chunck to commandeer 7 milion shares of the IPO -- basically that's all of most offerings. That's why SFE has done rights direct to shareholders. I think that will continue, and SFE will do its own IPOs when possible and will use DSSPs when they do not have enough of a "stash" and/or whenever ICGE has a hot offering and they want (their shareholders) in on it.
I hold a lot of SFE, spread in several accounts, so I got a reasonable amount of ICGE; but USIT at 1:20 was dissapointing.
I think even if you own 300-500 SFE and you get, say, 30-50 shares of an ICGE, the DSSPs are worthwhile.
To put it in perspective, If you bought 1000 SFE at 70k, your ICGE dividend (100 shares) was worth about $6000, your USIT dividend was worth $700, and the upcoming Pac Telecomm offering will likely be woth $500-1500. That's roughtly $8k of dividends on a 70k investment within 3 months. Will they be able to keep that up? probably not, but they plan on 5 in the next 12 months, so even at $1500 each, that's a healthy return
(If you can't swing $70k for an investment, the % of course still work as long as you buy at least 300 shares to be "safely" into the IPO).
The safety of a braod-based company like SFE has helped keep its value up in bad times, something else to think about. Good luck,
SL |
