Anyone following AAZPB will know I am a holder from Aug 2008. Sound management and highly regarded owner Capitaland who together have always given me confidence that for reasons of reputational risk would support the balance sheet and honour the AAZPB prefernce share payments. Though they dropped like a stone during the GFC causing me me some angst I'll admit, they did the job I bought them for (and heavily) which was to preserve my capital while still paying a good return as the storm clouds gathered. Sure cash would have meant less sleeplees nights but you make your bed!
Anyway, I post today because something is up in AAZPB land. Early in the week they were trading 8100 and had only ONE buyer in the queue for 100 shares at one stage! They looked very weak and with the RBA's about change on rising rates it looked like bigger holders were trimming back their value in salute to lower forward rate outlook. Then low and behold, by the end of the Results announcement and the next couple of days they ahve traded up to $86.50 with a massive depth totalling over 12000 still on the bid as I write? Something is leaking from the good boat!
A line in the results presentation said something about about further improving and diversifying capital management. It sure looks to me like during the post results chit-chat the boys have let slip that buying back and replacing the expensive and "not tax-deductible" AAZPB's is a priority for the new CFO in the capital management improvement! Anyone have any other reasons while an illiquid and unloved hybrid would goe from no-bid, dropping below 6 months support price to suddenly must-have, over-bid 18 month high price except a buy-back at $100 has been leaked as "the next step"?????
goodluck
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