There was only a small spike to 80/81c and only for a few trading hours 77c would be fairer reflection of the average recent price?
Printable View
There was only a small spike to 80/81c and only for a few trading hours 77c would be fairer reflection of the average recent price?
Right now I would from past experience guess that NZO has run into some difficuities with the capital return,and that is what I would put the price slide of this last week down to. PPP another duel listed stock had this trouble a few years ago. Could be the IRD of either country is questioning the move.
Yes, the PPP CR took a long time and a complicated process - but the outcome was rather good - a decent part of the CR was treated as a dividend by ATO with franking credits, whilst for the rest is was a straight payment, subject to taxable income - the kicker being that other taxes and royalties paid by PPP were able to be picked up as a tax discount - this exceeded the value of the straight payment, with net result some could say, a payment by ATO.
Actually there was another kicker in that ATO just used 1:1 exchange rate - this worked particularly well to.
I did not follow the NZ side of the CR.
What NZO will do remains to be seen, but one should not sell their NZO shares in to much of a hurry IMO because a similar ruling to PPP will be very good. If it is completed within 6 months I would be surprised
M
What you guys are in effect saying is, that NZO management are incapable or slow learners.
Or playing a cunning game.
The sort of pastime one can leisurely indulge in, while sitting by the Trough with not much else to do.
I put the slide down to the MSCI rebalancing - NZO will drop out of the small caps index and instead be added to the micro caps index. Immediately after the announcement of the changes there was a rush of orders (mostly small odd numbers) as those investing in the small caps index sold their parcels and the
micro caps followers bought in. Small caps is obviously wider followed, hence some net selling occurred.
You can't talk about rebalancing Imbalance!
Pretty good - I kept you silent for 2 days!