Quote:
Originally Posted by HamsterWheel
if you try to sell 50,000 shares you'll find that the brokers don't want them at whatever price they are currently quoting and the price they will offer you will equate to what the normal shares are selling at.
Do you lot have to find a conspiracy in everything you do ?!!
If there was money to be made swapping between the two types of shares then investors would quickly do it.
Another lesson from Investing 101 for you all ;-)
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I went out at lunch, got an ice cream, and though doh! USD conversion. So I just checked it all out again.
Pleased to say, I think I am not wrong. All currencies are GBX.
PHRX.L; bid offer spread is £16.00 - £25.00, mid point is £20.50
PHRM.L; bid offer spread is £11.00 - £11.75, mid point is £11.37
So if I take 50,000 of
PHRX.L (worth 50,000 x £20.50 =
£1,025,000)
and convert it to
PHRM.L (worth 50,000 x £11.37 =
£587,500)
I lose
£1,025,000 -
£587,500 =
£437,500.
Almost half the value. And my unrestricted shares suddenly become restricted
Regulation S shares. I can't sell them in the USA.
Now, I know nothing about share dealing it must be said, but to my untrained eye that looks like an awfully poor investment choice.
If this was a stock people wanted to buy,
why devalue it, and sell it at half price.
Seems barmy to me.
The reason we watch Phorm so carefully, is because when we don't,
strange things start happening to our net connections.