"Finally, there are a lot better opportunities currently in the market than AD8 at the moment. For example, RMD has been whacked to $21.5, there could be a lot better value there in the short to medium term than AD8 a $13."
You may be right there. But RMD has zero momentum and terrible sentiment behind it. It has extremely high debt and in my opinion is reverting to the mean. Don't get me wrong, RMD is a terrific business and I'm a holder. However, as per my previous comments, AD8 is showing strength and appears to be tightly held. There's been numerous fundies who've previously taken profits and then struggled to get back in. I'm not for one minute suggesting that the SP won't capitulate. Let your winners run.
If someone had bought AD8 the other day in that very small window of opportunity closer to $12.50, then they've already made over 10% in 24 hours. In fact, it's up over 2.5% since your post in a weak market.
Yep, hard to disagree. Look at Macquarie, Domino's etc. In the past, I've taken part in SPP's and swore that I never would again. This is a smart move by AD8. It's a risky move for SPP participants. But not so much if you already have a high margin of safety factored in to your buy in price.
AD8 Price at posting:
$13.93 Sentiment: None Disclosure: Held
(20min delay)