cheers, great article. i suspect once the shares stop trading on defered settlement much of the confusion will disappear. right now people arent sure if they can buy or sell and some online brokers still require trades to be done by phone.
volumes are light, but i guess on a value basis its not that low. also with 90% held by instos its hard to see them trading the stock.
so effectively we have 10% available for trading day in day out.
i would think their are some index funds out there that need to re-balance their portfolio and buy into BBI. its now nearly a $1.8bil company(less at last traded price).
i guess the main issue is their is no dividends short term. so any ROI must be via capital gains. so you have 2 options: 1. buy for short term capital gains(day trade, or month) - i suggest their are better opportunities out there. OR 2. buy for long term gains - again over a 2year period i suspect the asx20 will outperform.
I could be wrong, but i dont see much opportunity for a major rerating short-medium term. sure credit could improve and the european economy, but a major rerating isnt looking great. the best chance was market sentiment reacting positively to the relisting. now that its debuted lower that looks unlikely.
goodluck everyone, whatever your stratergy will be.
BBI Price at posting:
0.0¢ Sentiment: None Disclosure: Held
