too true , sellers booking there profits
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How will they be called flippers if they ready to sell at loss ...they bought at 1.80 ...so selling below 1.80 will be loss for them !!!
I am not sure it will go much below 1.80 and for much time if any ...after these 111 m shares get absorbed then it will go back to 2.00-2.10 range ...may take 2-3 months though
no way there business will down turn like all bank type business as world goes down
The flippers obtained their $1.80 shares yesterday and they are selling today to lock in their profits - knowing full well it's a case of who gets out first.
So who are the flippers?
They are existing shareholders (typically institutions or large investors) who participate in placements and sell their existing shares at above the placement price - knowing full well that the shares sold will be replaced by the placement shares.
Happens with almost every placement of shares where existing institutional shareholders are given preference.
Example :
ACC has (say) 15m HGH shares. They participate and take 2m shares in the placement at $1.80.
Once trading halt is lifted, they sell at anything above $1.855 to lock in some profits.
Makes sense but really you have less than 1% of yesterdays placement traded and its hit the 1.80s already. I have enjoyed the div up until now, I liked the reverse loan book growth but I did have doubts about getting into the AU livestock business. HGH is starting to feel more of a roller coaster ride than I have previously experienced it to be. I considered it one of the stable parts of my portfolio long term. Now I am not sure.
Were placement shares entitled to the div? I didn't think they were. That would mean anything over 1.80 is a win right?
The flippers are knocking the sp down post the placement.
Market sentiment and share price dynamics are what could take the sp lower than $1.80.
I am a realist - bear in mind I have plenty of HGH shares from when PGC sold down so I am not trying to knock the sp down.
I was simply telling those who are complaining about being able to participate in the placement at $1.80 that they could very well get their opportunity later.
NZX and ARV are recent examples.
The way they have done placements ...ie Underwritten placement first then retail SPP non underwritten makes their life more difficult ...as first lot of flippers who got at 1.80 will make SP close to SPP price thus not many going that way which will lead to big shortfall which maybe sold at a discount ....Jarden is smart that they did underwritten part first and then let SPP part rot .....
Why they couldn't do SPP and Placement together or underwrite both parts at 1.80 !!! Jeff is supposed to be smarter then Jarden ...is he ??
He wants the money and the underwriters are smart enough to play the game to win - after being caught with PEB, ARV and NZX.
I do not have a problem with companies raising capital ( great opportunities sometimes) but I must say I draw the line when they raise money to invest in Australia.
Outsized ego at play - what makes NZ executives think they can take on the Australian players? What competitive edge do they bring to that market of sharks and predators?
Remember how that idiot Mark Weldon bought into Grain Corp in Australia? All in the name of growth and diversification - came back to NZ with a black eye and destruction of shareholders' values.
Jeff says welcome to the new shareholders - both significant institutional and retail investors
All going to plan says Jeff - some small retail investors might be pissed off but they just don't get the big picture. They can always sell there shares.
Jeff waiting for that doyen of business journalism Jenny to ring him for comment on such an unfair capital raise - got his response already
And Jeff back on the phone to RBNZ tohurry them up to allow him to Advance
Been a busy morning for Jeff but main thing is its all going to plan
I agree with your perception ...Outsized Ego at work ...
Are u happy to trust your money with such ego at play ? I am not that convinced at the moment
Also previous examples are not always what future holds ...so maybe like MFT he actually does better
Mind u all big 4 Aussy banks do more profitable business in NZ then in their own back yard ...So maybe he loves volumes and bigger market and thinks he is more efficient ...time will tell ...but I am worried with his EGO
alokdhir - Jeff is a very modest guy ....and far from being egotistical .... no outsized EGO here
So in your view he can help small investors grow their wealth ? Is it reasonable to assume he will only embark on wealth creating projects and not take unnecessary risks with shareholders money etc ...In nutshell will he be able to create shareholder wealth ahead ?? I am not looking for big returns ...just 15% including dividend ie 6% Divvy and 9% Capital growth consistently ahead ??
Just looking for your personal expert opinion as I am wondering if HGH is turning to be ATM type company