Always read your comments Mr Beagle, they have helped me a lot and they helped me decide to get into this company. So thank you for taking the time to share your thoughts with us. :)
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agreed. FNZC, for example, does not cover it yet and I think it would make a big difference if they did, just as you suggest. I understand that now it is in the NZX50, they may indeed start some analysis in 2018.
separately, I subscribe to the broadly-accepted idea that passive funds are a better way to invest due to lower fees and the inability of active managers (except for you and I, of course!) to sustain out-performance, especially for markets that I cannot keep a close eye on. but the kind of price action around PPH in the last week, makes a mockery of passive performance, doesn't it? we saw them coming and bought up ahead of their forced buying, thus reducing their return (though of course they will look fine against their benchmarks) and increasing active managers' returns.
but even if I'm right on this, let's not make too much of it, or we may kill the golden goose.. is it just NZ with a relatively thin market where this is exacerbated? or are there similar opportunities globally?
Good question and probably worthy of some investigation. It seems to me that this is not an isolated incident by any means and is indeed a free lunch for astute investors obtaining a first mover advantage over passive funds. I saw the same thing when CVT was included into the NZX50 and that went from ~ $10 to ~ $12 approx. a 20% gain as well. Sigh..if only investing was always this easy :)
I guess the passive funds do okay for the fact that the inclusion draws the extra interest we've discussed. I'd like to think in more liquid markets the effects weren't quite as pronounced but perhaps that's wishful thinking ? Agree 100% about not jawboning on this issue for too long...better to let some things stay under the radar as much as possible. Price action today will be interesting. Will we see some retracement on the gain so that canny investors who sold some on Friday can replenish their holding at a cheaper price ?
Interesting depth for PPH now pre open with highest bid at $ 3.88 and lowest sell at $ 4.85 with only a few shares. No doubt this gap will close up when market opens
Market cap now about US$800m
Better say that’s still awfully cheap or else will be shot down in flames
Chart looks pretty good though
Come next announcement early Jan and we be looking at $5 I reckon ...the market is @ funny thing.
Hey Mr Beagle ...as a matter of interest is your personal trainer and your ‘little birdie’ the one and the same?
They tend to under guess the value of Push ...wonder their latest gues / valuation is?