Tegel IPO

[winner69]

They say that consumer staples companies like Tegel are generally good investments - solid earners and non-cyclical

Every needs to buy the necessities of life eh is the reasoning

I went off believing that with Goldman Fielder - everybody needs their daily loaf and flour is an essential ingredient in many things

Now that wasn't a great investment

[Out to lunch]

Big volume today and another blow to the stock.

[percy]

Big volume today and another blow to the stock.

Yes a very large fall on big volumes is always a concern.

[McGinty]

Got out on close today.

This was meant to be a slow and boring stock in my long term portfolio, but too big of a fall on large volume for me not to do something. No news to back up the decline = follow the money (exiting the stock in this case).

Will watch from the sidelines now.

[winner69]

Record low that 155 and previous lowest close was 158

ASX still got a more hours to go and price still falling - but on pathetic volumes

And some of us were all so bullish this morning

[JeremyALD]

Record low that 155 and previous lowest close was 158

ASX still got a more hours to go and price still falling - but on pathetic volumes

And some of us were all so bullish this morning

Probably not a bad buy to be honest. I think people are seeing the drop and are panicking given this is supposed to be a slow moving stock and its recently slumped. Everyone selling this at the moment will be making a loss on the stock so I think I'll weather the storm unless it drops below $1.40 then I'll start to get worried. I don't see any reason to be concerned reading over the annual report and guidance announcements.

[percy]

Got out on close today.

This was meant to be a slow and boring stock in my long term portfolio, but too big of a fall on large volume for me not to do something. No news to back up the decline = follow the money (exiting the stock in this case).

Will watch from the sidelines now.

Maybe the right course of action.?
I will wait a month for the agm.
I never like buying/selling without a company announcement to base my decision on.
So far the only announcement has been the very positive one about them being able to sell fresh chicken into Australia.
Currently about 5% of our portfolio.

[winner69]

Last June the price spiked down this low it was back up in the 160's in a day or two

[McGinty]

Maybe the right course of action.?
I will wait a month for the agm.
I never like buying/selling without a company announcement to base my decision on.
So far the only announcement has been the very positive one about them being able to sell fresh chicken into Australia.
Currently about 5% of our portfolio.

Time will tell if I have made the right decision, and selling at a loss is never easy but sometimes necessary to preserve capital.
Listening to the market in the past has rewarded me a lot more than it's taken, and in TGH's case if I'm wrong I can always buy back in.
Will be interesting to see if something comes out from all this downward pressure on the price, otherwise look forward to reading the AGM presentation.

[trader_jackson]

I don't mean to get all excited or go on the offensive, but while we're at it, I thought we could take a look at Dick Smith's positives (at IPO):

One of the top retailers in Australasia.
Strong balance sheet.
Ratios are modest,and dividend yield is attractive.
Retail sales are growing.
Room for off shore growth.
Stable earner for long term investors.

I realize some of the things above could be 'hotly' debated, but I think my point is made... as always DYOR.

$1.55 ... we all know why that was... people did not want to pay a cent premium for this... speaks a million word of what the market thinks of the company... could be good for punters wanting to make a quick buck as I would imagine some will simply buy in for the dividend yield, even if the share price went nowhere.

IPO was set at the rock bottom of the range, and yet just over 2 weeks later it looks like we'll soon be there anyway...

$1.60 and decreasing, despite NZX 50 almost reaching a record, and interest rates expected to remain low (which should make companies with a 'good' dividend yield even more attractive)

Well done to the staggers... and best of luck to the holders

Well... not even half a year since my posts above and TGH isn't looking to fabulous...

I would have thought TGH would be more of a 'safe haven' during times of volatility, not one of the stocks most affected by it.

If it slips below listing price (ie 1 more cent down)... things will get "extremely interesting" (will it bounce or will it crash further)

Lets hope that TGH's "unique position" allows them to deliver on their ambitious export plans... and pay an ok dividend

On another note, anyone watching the Inghams IPO? (could be good for comparative purposes)

Disclosure: not holding, and have no intention to