not loosing yet read this from broker report,those who bought at 3.50 not loosing yet.......brokers change their evaluation from time to time, this is what I experience with SFE when it was about $7, they recommended avoid, but when it rose to $10 they recommended buy, do you believe them?
.........
Institutions got 7.5% of the stock and when it is in their benchmark indices (which it may not be for a month or
three) they will want 60%. That creates an enormous demand/supply imbalance which is worth some premium
in the price.
• The earnings numbers we are quoting PE’s on come out of the Tattersall’s prospectus. The suggestion is that
because they weren’t trying to pump up the TTS price on the float (because they didn’t need to to get it sold)
the numbers in the prospectus are conservative. In other words they have left a buffer in the numbers and that
come results the earnings and dividend numbers will be better than forecast. In which case the PE of 19.5x is
higher than it should be.
• If you look at all the trade yesterday…..the institutions haven’t jumped in. The top 5 brokers buying stock were
retail brokers. The main seller was, unsurprisingly Goldman Sachs JB Were, the broker to the issue.
• Institutions appear to have taken the view that the stock is trading above fundamental value and that until it
looks cheap or until it goes into the indices and they are forced to buy it, they’ll bide their time.
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