ALF - Allied Farmers Limited

[GTM 3442]

I wonder what happens after $0.001? Does NZX then move to offering one hundredth of a cent increments? Or is $0.001 the minimum bid you can make, so this becomes the absolute bottom below which the share can not trade (until they have a consolidation).

A consolidation would show how overvalued they are at $0.001, d'you think ?

[digger]

A consolidation would show how overvalued they are at $0.001, d'you think ?

Almost every consolidation i have seen ends up a act of desperation. Usually the shares continue to fall and within a very short time half again.
Some of you may know i was a dairy farmer and still am a cattle dealer.This year i will turn over about 150 cattle.Until very recently i used to trade through Allied farmers.Like the Morrinsville Allied auctioniars are great people to deal with,but about 4 months ago i laid down some conditions for further dealing as they are at the knife edge of going broke.The first was that at any one time they were not to owe me more than 5000 dollars and that the SP was not to fall below .6 of a cent.Hence for the last 3 months i have had to sell through Wrightson.
Now the agents tell me if everyone acted like me they would go broke for sure but risk is risk and i am here to look after me. in fact i feel some heavy selling farmers going through Allied are risking all and it is just musical chairs and the sh--t hits the fan when the music stops which could well be anytime soon.

[Toulouse - Luzern]

Hi,
Good on you Digger.
Sound approach.

[Toulouse - Luzern]

Hi MM,
If you fancy being a millionaire, then booking a trip to Bali is an option.
I have just come back and for $NZD848.44 today you can get 6,000,000 IDR (Indonesian rupiah) to spend in Bali.

Ref: http://www.oanda.com/currency/converter/

[minimoke]

Hi MM,
If you fancy being a millionaire, then booking a trip to Bali is an option.
I have just come back and for $NZD848.44 today you can get 6,000,000 IDR (Indonesian rupiah) to spend in Bali.

Ref: http://www.oanda.com/currency/converter/

Hmm, another tempting proposition. I am however dissuaded on the basis that spending in Bali will only return me photographs and memories. Whereas a scrip certificate with a million ALF shares will last me forever. it will be something I can pass down from generation to generation as a reminder of how Moms and Pops used to invest in NZ.

I'm also conscious a Bali spend would also only help stimulate the Balinese econonmy. While some might suggest NZ is an economy heading that way I'm inclined to think my spend might be more worth while in NZ. The lawn bowls season is nearly upon us and I'd imagine there are a few ALF investors who could put my contribution towards a new hat. That they can't afford the car within which they could place their hat on the back ledge will be a reminder of their initial folly.

JR - you might be wondering what will happen if ALF goes to $0.001. Well the obvious thing is that you will see the value of ALF drop by 50% in one trade. That gives them a market cap of $2m. By this stage there won't be too many stocks around where a $0.001 increase in SP see's you double your money.

[Newman]

JR - you might be wondering what will happen if ALF goes to $0.001. Well the obvious thing is that you will see the value of ALF drop by 50% in one trade. That gives them a market cap of $2m. By this stage there won't be too many stocks around where a $0.001 increase in SP see's you double your money.

The share price cannot go below 0.1 cent, that is the rule of NZX. To sell 50000 ALF shares at 0.1 cents would not cover the brokerage for one-off sellers.

[minimoke]

The share price cannot go below 0.1 cent, that is the rule of NZX. To sell 50000 ALF shares at 0.1 cents would not cover the brokerage for one-off sellers.

Unless they are with Direct Brokerage. A one off trade for $29.90 nets the broker $60 and the ALF seller a couple of cups of Early Grey and Custard Squares. And thats how much an Hanover/ALF holders $10,000 is now worth.

[minimoke]

The share price cannot go below 0.1 cent, that is the rule of NZX. To sell 50000 ALF shares at 0.1 cents would not cover the brokerage for one-off sellers.

Alternatively you can do like what a canny ALF investor did today. You could flick your 17,000 shares at $0.002 in an off market trade. You get to keep your $34 dollars and the brokers miss out.

Anyone remember when Mr Alloway said the ALF deal was the best chance Hanover investors had of getting 100 cents back in the dollar. Those $0.78 debentures would have been looking pretty good now! And to think they weren't too impressed with that initial $0.06 payment.

[stoploss]

Alternatively you can do like what a canny ALF investor did today. You could flick your 17,000 shares at $0.002 in an off market trade. You get to keep your $34 dollars and the brokers miss out.

Anyone remember when Mr Alloway said the ALF deal was the best chance Hanover investors had of getting 100 cents back in the dollar. Those $0.78 debentures would have been looking pretty good now! And to think they weren't too impressed with that initial $0.06 payment.

Didn't really have his eye on the ball ....

http://www.stuff.co.nz/national/6804...lash-over-ring