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View Full Version : Auckland International Airport - when to buy??



kiwigooner
06-03-2005, 08:02 PM
I would like some advice as to when to jump in and buy AIA stock. Before the 1:4 split? Or after?

Obviously, this is an attractive company given its monolopy status and potenial growth earnings. But when would be a good time to buy?

Before the split and then hope the price rises as more buyers are attracted to the lower share price (but doesn't the current price include some sort of pre-split premium and therefore not reflect actual value?).

Or after the split once speculation dies down and share price possibly falls below the initial split price to take into account the pre-split premium.

Your thoughts please.

kiwikauri
06-03-2005, 08:32 PM
b4

COLIN
06-03-2005, 09:10 PM
After, because I'm buying before.

Winston001
07-03-2005, 08:56 AM
I'm no expert but the experience of the market with Fisher and Paykel is that good shares seems to make a strong run up to the split date. And afterwards don't retreat. Psychologically Kiwis like cheap shares. Thus we will buy a $2 stock and ignore a $25 stock (like NZR was - now $36).

GPG seems to realise this by keeping its price down while growing its assets and issuing bonus shares. Sort of growth by stealth.

dinosaur
07-03-2005, 10:44 AM
I want to load up with some more AIA stock, BUT my main concern is the possible worldwide outbreak of Bird Flu. This would make SARs look like a picnic.

If there was a Flu pandemic, there may be no choice but for NZ to close it's borders.

Rather, it may pay to invest in Hoffmann-La Roche, the makers of the anti viral drug Tamiflu, as many countries are stocking up on it. If it will work or not, against Bird Flu, is another matter.

Discl. Hold AIA

Dazza
07-03-2005, 03:14 PM
another kiwi example, Trustpower afta their 2 for 1 split also rocketed, its now nearing $6, afta a split at 8....

i am also wiating for a time to buy the stock
so VIP dates are : march 18 - ex divi, and april 8 - ex split.

ive been watching the price very closely, was around 8.60-70ish last week, on friday/today so far at 8.40ish , sink to 8 bucks n ill definately buy.

check out the announcement again, they said if the stock closed at.... and then the price will be... u'd notice that there is like a 2% premium? or something forgot exact maths.. but just read it

DISC: looking to buy soon