Subject re: are we not thinking!? Posted 25/06/04 7:55:23 AM - 215 reads Posted by stelep7 Post #310429 - in reply to msg. #310402 - splitview
oh dear
is anyone here thinking?
looking at the yanks buying NWS bears absolutely NO relationship to aussies buying NCP.
In case you have been living in a bubble, NCP plans to move to the US. This means yanks want to buy the (NWS) stock, and aussies need to sell (NCP).
Why then......would aussie funds (who will be forced to sell their 2 biggest holdings) be concerned with US funds buying up NWS (which they will soon have to do on a great scale)?!
Parity is no longer relevant. The only trade I can see, is a pairs trade......short NCP & long NCPDP.....as its NCPDP that meets S&P criteria.
Voluntary Disclosure: No Position Sentiment: None TOU violation
Subject re: are we not thinking!? Posted 25/06/04 8:03:25 AM - 203 reads Posted by stelep7 Post #310431 - in reply to msg. #310429 - splitview
ncp is falling ONLY because our funds have to get rid of their holdings, because the stock will not have a weighting in the local index. They are not selling because the move to the US is a bad thing. Long term, this is a very good deal for shareholders, but traders know that in the short term the stock will fall simply because funds are forced to sell.
This is why US investors are buying NWS, regardless of what NCP does. There os no longer a safe arbitrage, which is why the two prices are not in line.
