Jeez Montana - CAV shareprice still going down .... if it is any consolation the shareprice has been lower than this. One week in 2008 it reached 133 - and lets hope that world markets don't collapse again or CAV might go under a buck .... but it is last century that CAV was doen at these prices
Wonder what a metre of decent carpet cost in those days
Finally some upwards movement. Up 6.9% today at the time of writing this post.
Forgive my ignorance (i'm new to the stock market) but can anyone shed some light on the overall weighting demand for shares has on the increases/decreases in value.
I'm stuggling to figure out why overnight demand has increased threefold, and the share price has had a significant increase with no company or industry announcements of any kind?
Could be any number of reasons. However the most likely is that its an illiquid stock with a massive spread.
This means that when someone want to get in/out they may have a significant impact on the price.
The spread is the difference between the bid and ask, it's what you effectively have to pay to get in and out of the stock (either that or put your order to the market and hope someone else crosses). I note that the spread is currently 9 cents (6.1%).
Small stocks like this have much higher risk (measured by standard deviation). Not all movements will be able to be attributed to an announcement.
Disc: Hold no CAV, but would consider getting in below $1.30'ish
They were supposed to have put their bid in last month but Godfrey Hirst appealed the Comm comm's decision to allow them to buy it.
"Cavalier slipped 0.3 per cent to $3.77 after Wool Equities emerged as a rival
bidder for NZ Wool Services International, saying it has funding in place to
make an offer for the wool scouring company.
Cavalier Wool Holdings, made up of Cavalier, ACC’s investment arm and private
equity investor Direct Capital Investments was ordered to make a temporary halt
to its offer for WSI on Friday pending an appeal by carpet maker Godfrey Hirst,
which opposes that deal.
The Commerce Commission approved Cavalier’s $40 million takeover even though
it would create a monopoly in New Zealand wool scouring because it agreed the
competitive threat was from Chinese rivals."
Court dismisses bid to stop Cavalier Wool’s scouring monopoly; Godfrey Hirst threatens to quit NZ
Posted in Rural News Updated November 24, 2011 - 09:41am, BusinessDesk
Godfrey Hirst NZ, New Zealand’s biggest carpet maker, says it may abandon local manufacturing after the High Court rejected its appeal against a decision to allow a group led by rival Cavalier to create a monopoly in wool scouring.
Australian-owned Godfrey Hirst said it was disappointed with the ruling and will weigh up its options over the next few days.
“It creates a monopoly in a key sector which potentially jeopardises the longevity of the New Zealand wool industry,” general manager Tania Pauling said in a statement. “We intend reviewing the judgement over the coming days and will be considering our options going forward – including the possibility of relocating some of our manufacturing assets offshore.”
The High Court in Wellington has dismissed an appeal against the regulatory approval for an acquisition that would give Cavalier Wool Holdings the ability to build a wool scouring monopoly in New Zealand.
Cavalier seems to have formed a nice base from late may through August between 150 and 155. I expect that from here @175, with most of the bad news behind us, we should have a reversion to the long term mean of 240 over the next 8 months for an ROI of 37% without depending on any particularly good news at all. There will be some bumps along the way but the longterm looks really, really good on this share.
Originally Posted by winner69
Lizard's gonna like that one.
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