Check out the depth on SPK ASX. 5 identical sell orders of 1,988 shares in each sell order. To me it looks like one seller and not 5 sellers. What's that all about, someone averaging their sell orders?
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Check out the depth on SPK ASX. 5 identical sell orders of 1,988 shares in each sell order. To me it looks like one seller and not 5 sellers. What's that all about, someone averaging their sell orders?
been trying some bounce trades on this goes up morning , smashed in the arvo. new lows again
Not sure where this bottoms
Attachment 15126
maybe something close to covid lows of around ~$3.81; & might be interested around that level.
I tried to buy some around mid 3 some years ago, might we get there yet? And genesis, I thought 2.45 would be a good price but we've passed that and still going, could we get to 1.80? Was that the float price?
I think when investing it pays to keep a sideways glance at your other options. Let's consider Chorus, another telecommunications (albeit as a wholesale network provider rather than a retailer) play also known more for its yield than its capital growth prospects. The two most recent dividends that Chorus has paid are 26.5cps and 19cps, but these are unimputed. At yesterday's closing price of $7.32 that means investors are sitting on an historical gross yield of:
(26.5c+19c)/732c = 6.2%
Now look at Spark that has paid fully imputed dividends of 13.5c and 13.5c fully imputed over the past year and closed yesterday at $4.10.
This gives a gross yield of: [(13.5c + 13.5c)/0.72] / 410c = 9.1%
Yes I do know that Spark has been paying out more than their earnings in dividends. So it may be that dividends do reduce in the future, even if Spark in their latest profit downgrade guidance specifically stated that this would not happen. Still I think it is best to be a little conservative with our assumptions. This is why when I do a capitalised dividend valuation, I average the dividends out over a five year period. I don't just look at the immediate prior year. My calculations using this method are here:
https://www.sharetrader.co.nz/showth...=1#post1047369
This means I would use a gross dividend rate of 35.07c and not 37.5c
This gives a gross yield of: 35.07/410 = 8.6%
Filthy talks about waiting for the share price to drift to $3.81. That would imply a averaged five year yield of: 35.07c/381c= 9.2%
9.1%?, 8.6%?, 9.2%?
Try looking at this in another way.
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Let's say a good job came up with a company called Spark you thought was good to work for with a negotiable salary. A mate of yours had recently accepted a similar position at the same company on a salary of $86,000. But the job market is always moving and your skills are in high demand. There were hints that you might be offered a $91,000 package. But with that market moving a bit more maybe you should hang out for $92,000? You procrastinate, wondering what you should do.
Suddenly a bus load of immigrants arrives in town with the same qualifications and experience that you have. Overnight all of those jobs at Spark are filled and job offers at anywhere near that price are taken off the table. Dejected you walk across the street to accept a job offer at Chorus: salary $62,000.
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The point of this job parable is that those following the squiggly line, worried about whether they can get a better payout than the next guy are so intent on following the squiggly line that when the 'income offer' of the decade sits in front of them in plain sight, they cannot see it. They haven't realised that the offer in front of them 'beats the market' by several percentage points. They are so intent on optimising their return that they let the return offer of the decade slip though their fingers. What I am saying here is that with Spark at $4.10 or $4.50 or $4.80, every purchaser is a winner. To give up such a yield opportunity because 'someone else might get a better deal' is IMO madness. When Mr Market puts an offer like this in front of you, and the Spark cupboard in your portfolio is bare, seize the opportunity (or at least partially seize it. - there is no need to buy all of your target stake in one hit) and buy the bargain that is in front of you. Or alternatively wait to buy something else with a yield 50% lower.
I am amazed at those who claim the NZX is stuffed and it is best to invest overseas are totally blind to a market offer like this which has been 'on sale' for a month or so now. So plenty of time to act. Sheesh, wake up people!
SNOOPY