Maybe time to think worst is over ...recovery time hopefully
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Not easy to calculate exactly how many shares involved when any stock is exited from the index as funds tracking the index shrink or grow (mostly grow in the global markets).
Also, there's no reliable data on the funds using the index as their benchmark, as they could be underweight or overweight. That impacts on the volume of stock they hold.
And NZX stocks are so pathetically small in general that their index weightings often just rounding differences to an index performance!
Suspect most of the local fund managers have been bailing out even before the index announcement while retail investors have been buying with no heed of the indexing impact.
Exactly 40% of nta. Even RYM at 67.5%
Glad I worked today. I would have thought a bounce was in order after SUM making a positive announcement.
In light of Brett leaving, the company needs to make an announcement quick on any issues with the company and its finances. At the the very least a confirmation of the current position. Particularly important with the loss of value in the market cap in recent weeks. This is just plain unheard of, SP at 40% of NTA. There is just too much speculation as to Brett being pushed.
still dont know why so many rely on NTA. In the modern world its pretty much dumb now to rely on this figure
why
cause directors employ there own valuations or employ someone to value it nicely. do your research
Valuations should be by accredited and independent valuers then scrutinised by banks, auditors and oversight by NZX. OCA is part of an industry with valuation norms. What you are suggesting is wild-west where anything goes.
A few of our fellow investors are extremely happy the lower the sp goes, they say thats where they make their millions.
im not suggesting wild west at all ( unlike the finance company days where all reputable people gave them a grade ratings lol ) im suggesting you need to take NTA with a grain of salt because of my statement above.
debt magnifies NTA on the way up , and crushes it on the way down esp if debt stays the same
liquidation value is a better metric than nta i reckon
Liquidation value only applies when a company is no longer a going concern.
NTA can be a fair assessment of value as proper valuations of RVs are actually done by actuarial experts who take into consideration a multiple of factors (including age of occupants).
However the valuations need to transparent and the market has confidence in the numbers - something that OCA has not handled well.