Back in the downward trend....again
Printable View
Back in the downward trend....again
How do you manipulate the market and get discounted shares you want to own if you are a big institution like acc or NZ gov't superfund.
Here is a theory. Appoint a manager like AMP capital, provide them with large amounts of funds to go on a merry share buying spree including "growth" stocks, which are relatively less liquid, fire them as a manager and ask for your cash back. The manager is then forced into selling, depressing the price.
The institution then picks up the same shares up at heavily discounted prices c/f to what they were purchased for by the manager, as the cash starts rolling in from the selldown. Possible?
but thanks anyway Mac it was a good read....lucky it was a quiet day at work
One bit of your theory is inconsistant. If one big seller can artificially push down a share price of an illiquid share (a seller such as AMP), why wouldn't this same effect manifest itself in reverse? Surely AMP would have artificially pushed up ATM the share price originally when they bought their large holding? How can one shareholder artificially push down a share price without artificially pushing it up going the other way? I am suggesting here that ATM at 90c was always an artificial price.
SNOOPY
I don’t bother to comment on short term matters much, but it would seem most probable Ziggy don't you think that around 15M to 20M shares will come from AMP and go to Australian investors, funds and/or brokers on or shortly after listing day.
AMP will undoubtedly be working behind the scenes right now with whatever Australian broker they have to solicit the best possible off market (ASX) deals they can.
It will be interesting so see what price premium that competing Australian interests will be prepared to pay for a block of shares like that in taking up an initial position.
It will be a pleasure for shareholders to have the overhang lifted, and a drift back to valuation also.
Boom, regular as clockwork, take out orders to 1c below todays starting price. So predictable, the same pattern played out over the past few weeks/months.
As a tip to people looking to invest in ATM ATM (???? ATM At The Moment!): Wait until the current seller runs out. Will be good buying and will occur probably not long after the ASX listing. Keep an eye out for an SSH notice and your finger on the button when it happens!
Errr, so frustrated
Just relax, there’s literally years of growth ahead, and valuations will be recognised and will grow commensurately too.
AMP have to sell at a whatever price to meet their new policy objective, if it happens that such an event drops the shareprice of such a prospective company as a2mc by 43%, then one may look at that as a gift.
Anyway, what happens to a rubber band when pulled down and released ?
Yep, just a bit more patience.
whoever is doing this is a) not there at NZ8am and b) timing it to run out in the next 4-5 weeks
its a classic, dull and uninspiring shaking the tree.
they must be grumpy, wonder why? Bwah hahahahaha
Well, the 5 O'clock boys are still in town it seems. Blobbles is right on the button with a trend that has been going on for quite some time. Let the buyers build up and then hit every buy order at the current price and also buyers 1c below at the end of the trading day. This sort of trend will act to make buyers a little nervous IMO. Unfortunately SP will continue to drift down until the sellers have nothing more to sell.
It looks to me that there are more sellers than just AMP and worse it appears that they are willing to sell preferably at anything above 50c but lower if that's what it takes to eradicate the stock from the portfolio. That all looks like institutional selling from placements made at 50c when A2mc listed on the main board a couple of years ago. That leads nicely into what Mac has mentioned above and that is when a fund manager has made a decision to sell they prefer to expedite orders as quickly as practical. The trend looks a lot like that.
If selling is because of portfolio realignment with current fund management philosophy, and nothing to do with fundamentals then we are short term losers and long term winners all things being equal.
Morningstars fair value assessment of 0.70 is encouraging too.
If you look at the behaviour of FSF and SML and compare the charts to ATM,you will see there is a close correlation between their performances lately,milk is not flavour of the month right now,that will change,so until there is either very positive news from ATM or milk prices rise again,I think we will drift.