You can still see some of the trades in the depth, 500 000 parcels at $2.90. We have a new target set on price, but maybe, just maybe, it will only come down to 295 ;)
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Still plenty of private equity stock effectivly over-hanging the market and major sellers at $3.20, with limited near term prospects of significant price appreciation I see no reason to hurry back into owning this stock.
Best of Breed runs their operation far more professionally in more ways than one !
Little doubt Quadrant would have sold more if there was more demand at $2.90 so there's your boat anchor attached to the share price right there, in my opinion. That and this stock is on twice the historic PE as Ryman and Ryman are talking up rapid expansion in Australia whereas these guys are just "talking" and doing more of that than I feel entirely comfortable with to be honest. As you say, different views, that's what makes a market.
Happy to chew popcorn on the sideline for a while :)
Roger,
Just interested in where you got the fact from which says that SUM is twice the historical PE of RYM?
I think that I disagree $2.90 sets the ceiling...as I understand it, a discount is necessary for a large sale. We've seen with SUM (the first time), SKT, and TME (I think) as examples where a large seller settles for a discount only for the market price to rebound beyond the share price just before the trade halt.
I would also interpret Quadrant keeping a large chunk differently. Rather than a failure to flick the lot, I suspect they want to take some profit off the table but hang on for the ride in case the ride continues.
The share prices in the cases you mentioned above rebounded in a bull market, before a large amount was sucked out of the market by MRP. The fact that Quadrant still has shares and has shown they are a willing seller will keep a cap on the s/p in this stock my opinion. ( they have previously already taken profit )
market.ft.com
Some Analysts value SUM high end as $3.80 and RYM high end as $6.
Price / Historical EPS, not that historical EPS has much to do with it in SUM's case as they're growing quickly.
To be clear, I didn't suggest $2.90 is a ceiling, but I feel their stake and their stated intention to quit may have a dampening effect on the share price in the future until its cleared out.
FWIW, Macquaries have a price target of $3.90, assuming a build rate of 225 units pa, 75% of the company's target.
Indeed!
I did a double take on the $3.90 and had to check my eyes/screen/sobriety.