a look into the future....., page-4

Hi jbc,

"One of the issues I think the managment needs to address is the lack of Australian institutional support for the stock. This is reflected in the the very small trading volumes and size of average trades which is less than $5,000."

Liquidity in PSA is good for short term traders, as it
makes the share price more volatile.

Nobody knows better than yourself, about
the volatility in PSA .... :)

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Just how thin is this market ..... ??

At 96 cents, about 100,000 were dribbled onto
the market over about one hour and it still went
down 10 cents or more ..... and that day the
total volume was about 500k.

..... then the bargain hunters moved in and the
stock finished at 94, at the close .....

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Anyway, PSA does have a unique problem here,
largely caused by their own success and the tight
holding of the Top 20 = 70% (?) of the issued
scrip, which does not leave a lot for traders, leave
alone any institutions.

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Institutions will not be interested until they can
exit their holdings, without decimating the price.

So, improving the liquidity presents a challenge
for the management .....

..... issue more shares ? They don't need more
money right now and any issue will be negative for
the short-term share price ..... and an issue to the
instos may not help the liquidity problem anyway,
as they are likely to be longer-term holders.

Raising more cash for the sake of expanding is
probably not on the PSA agenda, after their
previous experiences, either .....

..... though expanding their operations may help
to move their fortunes up the ASX indices .....??

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Tricky stuff ..... of course, as the price rallies some
of the shares from the Top 20 may come onto
the market, which would improve the liquidity in
the short term, at least.

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Better still ..... a takeover by a bigger player
would be nice ..... :) :) :) ..... living in hope.

That would solve it !~!

happy trading all

yogi