DHT Holdings Inc (DHT)

[downsideup]

And THAT error in relation to the listing... was the point of my prior post here on the subject of the "average share price" in the distribution.

"The average price per common share in the deal is $0.70, but, the single share of preferred is $140... so the average... [($0.70 x 200)+ ($140 x 1)]/201 = $1.39 in capital per actual share... with the company controlling whether or not and when the preferred are able to be converted... ? Listing risk... gone. " http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73643410

In that post I noted that the "average price" computed in relation to the listing issues isn't actually defined by the market price of the trade in the common, only... given that each common share includes the attached rights in the distribution. Rather, the result of that "average price" computation will be defined by the aggregate in the total numbers of the shares traded including the rights issues, which means for DHT that it will include the prices paid for ALL the shares in the distribution... that being only half common, with the other half being the preferred. The combination of common and preferred shares in the distribution gives an average price per share (share capital for purposes of the listing) of around $1.39.

It looks to me like the split they made between the common and the preferred issue in the distribution... accomplishes two things.

First, it obviates the typical utility of anyone conducting a market battle in the trade over the $1 price point... as that price point for the DHT common has no function in putting the listing at risk. Clearly, the split made well and fully anticipated the probable market price impact of the trade following the announcement.

Second, it leaves the company in sole control of the timing of the conversion of the preferred issue to common... so there's no utility in anyone conducting a trade that is focused on a fixed point in time, that will intend on gouging offering participants of shares on the cheap by holding the share price underwater at the point when the restrictions are to be lifted. Given no viable method of judging the timing of that future event... there's no rational ability to justify a trade based on it.

DHT management seem to have done a really fine job of rewarding their shareholders with VALUE... improving the company's position, and accomplishing that BY rewarding shareholders. They appear to me to be looking out for shareholders, and they look more than bit smarter than the Wall Street average in the effort they've made.

I give 'em two thumbs up...