Yeah, that.
Grinds my gears.
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Are we going to see a break through the 1.05 today?
MET raised $100m in a debt issue at 3% in September 2019 and history shows their share price took off shortly afterwards. I know debt and equity are inextricably related but I found it curious that shortly after MET raised those funds the shares took off. Those bonds are currently trading on the NZDX secondary market at just 2.05%.
With OCA certain (in my opinion), to raise the full $125m at just on 2.0% one wonders if the shares will behave in a manner similar to MET and also take off soon ?
Why would they, how does one explain this ? I do not have any answers but only one theory.
In the process of doing a bond issue the company, its prospectus, (now known as a product disclosure statement) and its future prospects gets put in front of many powerful and influential investors and many of them ask why bother with a 2% bond return when I can get north of 5% dividend yield plus outstanding growth prospects ?
I think this theory of mine has genuine merit so I have believed my own creative B.S. and bought even more this morning :)
The strange thing is though Beagle that household deposits with banks have not been reducing and I am starting to think a lot of those deposit holders are far too conservative and scared to invest them anywhere else except maybe Government Bonds https://www.rbnz.govt.nz/statistics/...sits-by-sector
yea im a holder again major resistance breached so lets see how it goes , 1.10 next resistance then 1.20 not much in between based on price action