I have absolutely no information not otherwise known to the market. I am simply a long term holder that tries to do my own homework when deciding to invest in a stock. I have a fairly good understanding of CUP, so I will throw this in to the mix in relation to the suppressed share price.
If I had to guess, the reason the CUP share price will remain fixed in a tight trading range is almost totally related to CBA/Colonial stated intention to leave the register. CBA/Colonial hold 40% of the stock with next holder coming in at less than 10% according to last Annual Report.
All client indemnification/compo payouts should be expected to be finalised within the next 3 months. After that, I would expect some significant off market changes to the register. It is anyone's guess whether an anxious seller will sell at a heavy discount, (just as they did with Count Financial business) just to move on.
In the absence of a "natural" buyer, I have a personal suspicion, based solely on the already demonstrated approach CBA has taken to financial planning, the stock will be sold at a discount to market. It has the potential to make the share price quite volatile.
For my money, I am very interested in buying a lot more stock once this major uncertainty is removed. In the meantime, a 2c half yearly dividend keeps me quite happy to hold.
GLTASH
CUP Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
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