RYM - Ryman Healthcare

[Snoopy]

Never average down - golden rule for professionals.

There are a couple of problems with that meme.

The first thing to recognise is that 'averaging down', can only be done while you are in a state of denial. Shares you have purchased at a higher price in the past are still worth what you paid, but new shares in the same company you buy today at a lower price are worth less - right? Of course not! All the shares you buy today are worth exactly the same market price as the shares you purchased earlier. Thus you can never "average down". That is an impossibility. You can only "average across" - pay the market price of a share as they trade on any particular day.

Next linking this piece of advice to 'the behaviour of professionals' is wrong. If that was what happened it would mean that all companies that go bankrupt would only have amateur shareholders on the share register. The professionals would never even enter the share register as the share price fell, and they would always sell down their existing positions as the share price sank. Obviously not true. In fact, because professionals tend to deal in larger numbers of shares it is more often than not their own behaviour that influences the share price direction. Not the other way around. I am sure that professionals would much prefer to sell out of their positions in a rising market. But because they hold substantial stock positions, they can't.

This behaviour is mirrored as the market rises. The reason why institutions must pay higher and higher prices if the want to accumulate a stake quickly is more often than not market liquidity. I am sure they would love to pay less for their shares ('average down' - sic). But market liquidity means that this is not possible.

Bringing this back to Ryman, I don't know what a good entry price would be. I know it is linked to the great 'kiwi property ponzi' game'. But that is a game I have always been too shy to play (to my great cost I guess, at least so far). So I will end this post with my own investment meme.

"If you don't know under what circumstances you would leave a particular investment table, then don't take a seat at the table in the first place!"

SNOOPY

[Rawz]

Each to his own and all that but I would be surprised if it goes much below $5.00 again

It may happen.. never say never

[bottomfeeder]

It may happen.. never say never

I see it going slightly below $5. Wholesale issue was at $5, retail at $5.20, underwriter at $5. Thats my understanding, I could be wrong. If that is correct the underwriter will unload for anything over $5 and when it gets closer to the end of the unload may get down to $4.90. Thats where my order will be sitting.

Interested to hear what everyone thinks.

[Frostwind]

Am I understanding this correctly? Underwriters paid $5 and retail paid $5.2?

I see it going slightly below $5. Wholesale issue was at $5, retail at $5.20, undrtwriter at $5. Thats my understanding, I could be wrong. If that is correct the underwriter will unload for anything ovet $5 and when its gets closer to the end of the unload may get down to $4.90. Thats where my order will be sitting.

Interested to hear what everyone thinks.

[bottomfeeder]

The Retail Bookbuild was well supported, clearing at a price of $5.25 per New
Share (Bookbuild Price), which represents a premium of $0.25 (Premium) above
the offer price of $5.00 per New Share.

Additional Shares applied for by eligible retail shareholders in the Retail
Entitlement Offer will be allocated in full to those shareholders at the
Bookbuild Price. Scaling has been applied to institutional and broker bids in
accordance with the terms set out in the Offer Document dated 15 February
2023.

From Ryman NEWS

Am I understanding this correctly? Underwriters paid $5 and retail paid $5.2?

OOps $5.25, presume underwriter got them at $5.00. Anyone have confirmation. Plus hefty underwriting fee.

CR at $5 taken from post on OCA as follows. Can anyone confirm this.



By BALANCE #14905

"I have stated before and will state again - I do not do shorting.

As for the CR, it is but my opinion and the 50c is an inevitability unless they get on with it.

And btw, CR at 50c does not mean the sp has to be at 50c - Ryman did it’s capital raise at $5 with its sp at $6.

And of course my opinion can and has been wrong in the past!"



My posts use the excellent money making features of "fuzzy logic" (Perhaps its just fuzzy thinking, I may be getting too old for this)

[Balance]

Am I understanding this correctly? Underwriters paid $5 and retail paid $5.2?

As all the shares not taken up were placed, underwriters did not have to take up any shares.

They get to pocket the $34m fees, thank you very much!

[limmy]

Dropped below $5 this morning. Those who took up the rights must be regretting their decision now ?

[BlackPeter]

Dropped below $5 this morning. Those who took up the rights must be regretting their decision now ?

Hardly. Anybody only buying at absolute bottom prices is either a liar or not buying at all.

Essential is whether RYM shares are in the long run good value at $5. I think they are.

[UkiwiS]

Never average down - golden rule for professionals.

Not very professional of me but I averaged down today. I added 1000 @ $4.93

[whatsup]

So where is the bottom for RYM, what a coc$ up imo. $4.93 atm !!!