Looking stronger now at $4.35, but still lagging on ASX price of A$4.22.
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Could a be a few attendees at NZX's presentation by Serko last week deciding they better grab a few before the sp reaches $5.00?
Share market old timer I used to hang out with once said to me : "Investors in NZ find it harder and harder to buy a stock as its share price goes higher and higher. It is perverse as it should get easier and easier! Means the story is getting better and better, and more believers are jumping onboard."
So much truth in what he said.
Nonsense.
Share price is always underlying value plus hype. Hype can be a big number and it can be positive or negative. Just looking at the SP does not allow you to identify the hype component - it would have been not very clever to buy into PEB or WYN while the price was high - but obviously for some other stocks (like MFT or FPH) a high and constantly rising price seems to reflect the underlying value.
A high share price is no reason at all to buy a share - but, if the underlying value is better than the SP, than it obviously shouldn't be an obstacle either.
Whether Serko is cheap or dear is nothing you can read from the share price ... other than that the market seems to think at this stage that it is worthwhile buying. Sometimes the market is right and sometimes it is wrong. Just remember - this is the same market which was happy to pay at some stage $ 4 for TRA, $2 for WYN, $1.60 for PEB or $20.0000 for Bitcoin.
I think you can find exceptions to every rule, and a little common sense goes a long way. However, if there wasn’t some risk everyone would be doing it.
Are the big boys about to pounce now they have sucked the price back again - or is the sp about to tumble back to a price where I will be forced to start accumulating again? Cat and mouse going on.