Thanks
@Autosime. I believe I may have been trading the market for as long as you, when we were both trading small E&P companies. You posted a great deal on COE, correct?
My post on SoI was obviously ambiguous because my intention had
nothing to do with financial metrics. My intention was to highlight that many blue chip socks have huge SoI. It used to be that blue chip stocks had relatively small SoI, which was one of the attributes of being classified as blue chip. Any company with a high SoI was considered below investment grade, and ignored by many, simply because of the number SoI. However, along came the GFC and the scramble for re-capitalisation, and all of a sudden, blue chip stocks ended up with huge SoI.
When the share price of a company is not rising, many HC posters will bang on about the level of SoI as being one of the reasons for the non-performance in price. So my post was intended to highlight that IMA has less SoI than the big banks and
only has a free float of 294m shares.
One of my criteria in investing in a company, is not SoI but
liquidity. I have passed on investing in many very good companies because of low liquidity, where a few hundred dollars can move the price by more than 10%.
