I think Joewolf hit the nail on the head. The investment arm of the State of Georgia wants out. Instos exiting their positions periodically have a dramatic downward impact on the SP at times when the underlying metrics are good – excellent even. For USA shareholders to exit CCP makes some sense – e.g:
they do not get the franking credits;
the Australian dollar has weakened relative to the US dollar; and
there are attractive USA options for redeploying the funds released.
Such times should be welcomed by Australian investors who have the funds to invest, and an interest in holding more CCP. I bought 1,200 shares today for my SMSF at $9.46, and would have bough more if the SMSF had the readies. My SMSF now holds 14,200 CCP, and if I could, I would increase that by as much again, and reduce my TGA holding in the interest of balance, but not at circa $2.00 per TGA share.
The Annual Report stated nothing new, so that was not the trigger of yesterday's SP slide. If anything, rereading the good-news story should have had the opposite effect. The entry of Encore to the Australian market has been on the cards for some time, so that should not have occasioned yesterday's huge SP retreat.
CCP Price at posting:
$9.48 Sentiment: Hold Disclosure: Held
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