I think there'll be lot of backlash if they indeed declare a special divvy..
With re HGH if RNBZ restrictions are lifted we could see some handsome divvy payout.
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Not quite sure whether this is true.
Currently 23.27% of all HGL shares are hold by insiders - and they are basically not on market (which is relevant for the NZX50 inclusion).
No matter, how often you split the shares - there will be absolutely no change in liquidity, unless the insiders decide to sell some of their shares.
Unless they (or better he - most of them are hold by Tim Glasson) do, there still will be 23.27% of all shares in insider hands. It does not matter at all, whether these are 13.9 m "full" shares or 27.8 m "half" shares or 69.4 m "fith-"shares.
Liquidity only improves if more of these insider shares are available on market. If that's what Tim Glasson wants, he could sell today. Why should he after a share split?
Having said that - I remember times when HGL used to be part of the NZX50 index (might show my age), i.e. there is absolutely no need for them to split their shares to get back, they just need to have (relative to the others in the NZX50) a high enough market cap of their free floating shares.
Compelling evidence for the jury / (Board ;) ), to consider with very large sample sizes for each studyWe need the extra liquidity for NZX50 inclusion.Quote:
price performance of split stocks outperformed the market by 8 percent during the year following the split and by 12 percent over the ensuing three years. He looked at over 1,000 stocks for each study, including 2-for-1, 3-for-1 and 4-for-1 stock splits".
If you want liquidity issues try DGL (delegats).
Hallensteins isn't too bad on that front.
But with HLG's tight Register with so many happy campers wanting to stay put - some of the SP formulations
forward eclipse that 12% in just one short rush - compounded forward with more of the same the 12%
over 3 years may be comparable to well say 75% 125% 250% - anyone want to pick a number after looking
at HLG's recent SP record ? ;)
I dont see further new holders buying in wanting to sell anytime fast either once news hits the wire .. ;)
Remember - there are vast extra bucks out there not going on holiday overseas, not liking the Bank's extortionary low
deposit rates, and a huge amount of new Retail Investor attention that materialised in past year & lots of bucks with them ...
Another large pile to float in off Bonus Bonds being liquidated in near future too
And still just the same number of slightly less that 60 mil HLG shares on issue ..
What does supply & demand dictate on where things may go ?
https://www.pdn.ac.lk/purse/Proceedi...11/it/it_7.pdf ExcerptQuote:
According to the analyses, 54% of companies recorded an increment of trading
volume after the stock split regardless of length of the data frame, and the trading volume
increased significantly in 60% of companies. From a total of 26 companies, 65% and 62%
of companies have increased their market price and number of trading respectively
7.75 .. 8.00 here we come
Anyone want to sell up or spit out a few from their stockpile to help out a slight liquidity problem,
or maybe all are even more eager happy campers for the time being ? ;)
Share split good idea or not (there are academic papers showing them good or ineffective) ....it all comes down to what the likes of guru advisors like Jarden recommend for NZ situation.(at a cost of course)