Bargin hunters stepping in today, one of the stars of the bourse.
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Bargin hunters stepping in today, one of the stars of the bourse.
PGW is certainly reaping the benefits of supplying the farming sector although the sector is not as profitable as some would think.
Farmer friend tells me that his input costs (fertiliser, diesel, wages, parts, freight, etc) have gone through the roof. On top of that, the government has been imposing all sort of regulations and costs as well and they have had issues with the supply chain as well - input & output.
So net net, his farm is only marginally more profitable than before. Still, better than going backwards.
So much for the low ball takeover offer I predicted in 2020! But in a surprise announcement to the market today, the Chinese government have reduced their holding over the period 26th February 2021 to 26th July 2022, from 12.928% of shares held down to 11.924% of shares held as of today.
http://nzx-prod-s7fsd7f98s.s3-websit...867/375259.pdf
$5.924m / 1.317m = $4.50 (average price at which shares were sold)
Old Conclusion
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Judging by the average share sale price (wrong number $5.21), it looks like most share sales were when the price peaked in January/February 2022. Not sure what to make of this, except to say "smart trading by BCA New Continent Agri Holding".
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The $4.50 average sell down price changes things. In February 2021 the share price hit a local peak of around $3.50. It did not surpass that price level again until August 2021. So if the average share price of shares sold was $4.50, the bulk of those sales must have occurred after August 2021. There was a large volume spike of sales at $4.50 in what looks like late October. So if that $4.50 average sales price is accurate, most of those share sales must have occurred between August 2021 and April 2022. If that is true, then the volume sales picture shows that there was not an excessive dump of shares on any one day. Those shares look to have dribbled onto the market in a spread out and planned way. Make no mistake the Chinese government has made money on these sold shares. But not as much as I had hinted at in my previous erroneous conclusion.
As is well known I am not a trader so don't usually follow the movement in price of sold shares like this. But if my observations are accurate, what does this mean?
SNOOPY
A couple of corrections for you:
The number of shares are 9M8 (12.928%) down to 9M0 (11.924%)
and
They sold 1.317M shares for $5M924 or approx $4.50 average.
Disc: a major part of the portfolio.
Here is a nice picture of a Snow Leopard to distract you from the fact that I have no idea at all:
Attachment 14012
Top 10 facts about Snow Leopards
Predictions for FY divvy? 18c or 20c..