You knew about the index exit?
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Okay, I'm trying to gather facts about this index selling out thing. Maybe people have a few facts to share? 1. Is there actually a timeframe that index managers are working to to sell their OCA stock? 2. I see approximately 15m shares have changed hands since Monday last week. Any quess how many millions need to be sold? Like kids on a road trip, "Are we there yet?" 3.
How about the recovery after the selling has stopped? Ive read some stuff that it can recover well after a month or so. With OCA, who knows. So, I'm just trying to get my head around how much pressure there is to sell. Any thoughts would be appreciated. Cheers
SP will go back up.... perhaps the index finished selling...see GNE case?? Arvida case too...
For those wanting to buy....split it into 3-4 parcels...
Let's say U want to buy 20k shares...do it 4x within 10 days of trading days
So U will get the average SP...
I can't think of a lender that would loan you the dosh, in your circumstances, unless it was a benevolent benefactor. ASB would probably turn you down, though their margin lending on OCA is 60%, but at a rate of 9.35% p.a. which given OCA aren't paying dividends, and even when they were it was roughly half the margin interest rate, that % will quickly add up to a significant decline in absolute returns. Of course it depends on how long you had the loan, or the margin loan, whether you were called on the loan, and whether the SP substantially increased and you sold a pile of stock to cover the costs, and maybe take the capital gains out.
Maybe you're just pulling our legs?
Not pulling your leg.
My mum said she was willing to lend some cash, so you could call her a benevolent benefactor. But I honestly don't think that's fair, I'll be paying her an interest rate ~10%, more than I think she'd be able to earn anywhere else. So it is mutually beneficial for her and I.
It'll be non-callable, and I'll easily be able to service the debt.
You've been awfully quiet these past few days Baa_Baa, I can only assume you've been buying ;)
Holders will be hurting for sure, but moreso if they crystallise losses into the sustained selling, buggar all holders will be in capital profits and many will be in very substantial paper losses. As ValueNZ pointed out, and it's more poignant now, there were VERY FEW days that the the Covid low presented buy SP like now or below, very few. Likewise volume was relatively low as well during that time, so it stands to reason that the much larger volume now is selling into a loss, possibly a big loss. You don't have to follow the lemmings off the cliff, even if they are instos forced to sell into a rebalance.
Buy side is falling away, though so is sell side at the margins. This speaks to uncertainty, and hardly surprising as OCA has never (except Covid) had its SP daily go off the cliff like it has these past few days, the decent on the chart is pretty much vertical, although volumes are not as impressive.
Anyone who holds OCA and doesn't want any more, is in for the long haul, that's for sure, especially if they're only in in for capital gains. This is and has never been a capital gains story, that's a scenario is quite far down the track. The traders are loving this, you can see by the shift in posters vocal on this thread, circling like vultures waiting patiently for the lows, good on them, like who would have ever expected a boring RV in a successful turnaround multi year strategy to ever be so volatile, for so long.
Those whether holding or not, who want some, or want more, now is the time to be closely watching the SP. The opportunity might unfold a bit more over the next few weeks, or it might not and slam shut as fast as the Covid lows did.