Thanks for your answer earlier Sparky. I've picked some more up at these levels. Do we know who would drop out of the NZX50?
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Thanks for your answer earlier Sparky. I've picked some more up at these levels. Do we know who would drop out of the NZX50?
I have got a question for the group. $20mil of new capital was raised at 50cents. On the first day of trading turnover was just under $160mil. Who were the buyers an who were the sellers?
$70 mill was the sell down by the major holders to the brokers
Another $70m (prob close to that amount) rrecorded as the brokers hocked them off
Then a lot of redistribution
Plenty of clipping the ticket on the way through eh .... who has made the easy money (oh sorry there was some risk eh)
Looks like those who complained and moaned about missing out on the 50 cents placement have missed out on buying in at an even more attractive 49 cents.
The stock has turned imo and the weak-bladdered flippers have panicked out at 49 cents and 50 cents.
Institutions are now moving in to massage the sp back to at least 55 cents by year end.
We can't have a loss showing in the book for year end, can we?
Two points:
- Most people were complained that they were offered the shares which was bad from a small share holder perspective - ie. the principle
- maybe if they had sold the shares to existing shareholders (ie. those that actually believe in the company) rather than stag'ers, the shareprice may still be above 60c rather than below 50c!!!
My protest was from a principle basis. Not a shareholder and didn't want to be. But it sets a bad precedent for other company's which I may be a shareholder in (like XRO which did exactly the same!)
Don't disagree with you, CJ.
It irks me too but I have seen too many moaners and groaners over the years who talk a lot but do little.
Existing shareholders should surely welcome the opportunity to pick off the flippers at 49 cents? ATM's sp a year from now is what matters, not this week.
Remember Trust Bank? Same situation with punters moaning about getting bugger all stock at the IPO but when the sp dipped 20% below issue price, they were nowhere to be seen!
Likewise, Contact Energy.
Only if they have the cash to do so.