I also want to know the answer. But then this is not a very liquid stock with the Trust - run by a bunch of village idiots - holding approx 80%. A company with a monopoly in a electricity market that destroys shareholders value??? So how does that work???? Sack the freaking board on the Trust and VCT!!!
Unfortunately asking the company or the NZX is most unlikely to provide the answer. If you look at the share price graph particularly since April 07 there has been a concerted and deliberate sell down. It is similar to the type of behaviour that is attracting attention in OZ. Manipulation of share prices. There are lots of reasons that this might be happening to Vector. You named a couple but there will be others, including putting pressure on the Vector board to accept a low price for Wellington assets.
It may be some foreign owner trying to extract his money with the NZD high but....
The governance structure is a problem, the government interference has been a problem, and the chairman is a problem but no-one has ever doubted his financial ability. So is there possibly someone trying to put pressure on the Trust and the Board by borrowing some institution's shares and shorting the market.
It is not share price manipulation - it is just the market - that is what they say. On the ASX it is very refined - computers fire rubbish orders at the market - it isn't people with vested interests - willing buyers and sellers.
Someone accumulating lately? It's not one of you lot is it? A short term divergence. A bullish sign but unfortunately some of these divergences last quite a while before any price action results.
Last edited by AMR; 26-02-2008 at 11:13 PM.
Disclaimer: Do not take my posts seriously. They are only opinions.
Unfortunately asking the company or the NZX is most unlikely to provide the answer. If you look at the share price graph particularly since April 07 there has been a concerted and deliberate sell down. It is similar to the type of behaviour that is attracting attention in OZ. Manipulation of share prices. There are lots of reasons that this might be happening to Vector. You named a couple but there will be others, including putting pressure on the Vector board to accept a low price for Wellington assets.
It may be some foreign owner trying to extract his money with the NZD high but....
The governance structure is a problem, the government interference has been a problem, and the chairman is a problem but no-one has ever doubted his financial ability. So is there possibly someone trying to put pressure on the Trust and the Board by borrowing some institution's shares and shorting the market.
It is not share price manipulation - it is just the market - that is what they say. On the ASX it is very refined - computers fire rubbish orders at the market - it isn't people with vested interests - willing buyers and sellers.
I agree with the comment about the chairman, and the fact that he got the better of Gibbs & Co. tells me he is a very strong charcter. Hopefully strong enough to deal with any outfit trying to beat him down on the price of the Wellington network.
BDLBOM He might have won the war with Gibbs & Co but lost the war for the shareholders 30% drop in share price to satisfy his victory. Gibbs & Co have better things to do with their time until Vector decide on changes mean time share price suffers badly
AS you watch the little red line head south after yet another price drop and you shake your head and mutter "Whats going on" , What Bricks likes is all this Blue cable laying now 500 kilometer's that's the go and they have customers for it as well, @ $186 & cum Div 6 cents how many people are sitting waiting to POUNCE..
Surely at $1.85 and looking to go lower, the chairman and some of the board members must look handing in their resignation!
We can't really hold company directors to account for the share price. That's under the contol of fickle investors.
Directors are responsible for the company's financial performance however, and they did recently report an 18% decline in net profit after tax. But if an 18% decline was a resignation matter a lot of New Zealand companies would be looking for new chairmen and directors at the moment!
Originally Posted by Steve
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THE headache called VECTOR.
A Resignation Issue
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