Just wondering if Kar can buy that many shares per day under buy back guidelines. I cannot find anything to the contrary, so perhaps they can. Any sp increase would depend on whether there is a further attempted drive down by others. Further, they can only buy up to 5% above previous five day vwap, This by my calcs would only allow sp to increase from a guesstimated starting price at say $3.20 up to around a max of $4.00 over the eight buying days. This is based on only Kar buy back for any SP increase. Hopefully that will not be the case.
So really, unless I have made a mistake, the real benefit in sp increase,say to $5 would have to come from kar working in tandem with increased buyer interest. Some buyer interest has been demonstrated in the last few days. Another insto buying like IOOF would be of great benefit. This would provide greater vwap increases and allow kar to pay higher prices,hopefully overcoming any potential drive down by short sellers over the eight days.
Personally,I cannot see the shorters achieving much success from here on in, unless there is a t/o being planned. The shorters certainly have the fire power to overcome KAR's buying ability, if they wish.
BTW, that 2,000,000 buy by IOOF on the 19/11. has increased 9.75% or nearly $200,000. In two days. Nice work.!!
good to see you post again bellas.
IFL Price at posting:
$8.96 Sentiment: None Disclosure: Not Held
KAR Price at posting:
$2.94 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)