bought more tga, page-6

Hi FB

You wrote, "PP and the relevance of the new fiscal year is?"

There always is a measure of closing-the-books selling as we approach the year end. Sometimes investors (using the word loosely) want to crystalises losses to offset gains, and sometimes to crystalise gains to utilse tax losses they have accumulated. I was tempted to join the latter group this June, provided the SP was north of about $2.30, but the slide in the SP put an end to that notion.

As for the instos, I am on unsure grounds here, but I surmise that these guys may be driven by dysfunctional goaling, where the individuals (managers and the like) will sell to crystalse profits to achieve a good report, and perhaps bonuses. If their success is judged on the value of the shares held, plus cash, then this dysfunctionality would not exist. I was for many years a seller, and later a buyer of IT, mainly software, and the deals that one could get in the closing days of the sellers' financial years always amazed me - some that benefited the selling teams, but to the long-term detriment of their employers.

Why instos sell (and buy for that matter) often amazes me, and with a stock like TGA, ditching a few million shares has a material impact on the SP, exaggerated by trend sellers, in spite of evidence to the effect that the business itself is doing well. Maybe a reader of this thread who has some experience of the dynamics of insto activity could enlighten us on why instos at times seem to be irrational.

I am unsure if TGA has, or has had, any significant foreign investors, but these guys would want out on the basis of the declining AUD, and bear in mind that because they cannot normally use the franking credits, TGA is less valuable to them than it is to an Australian investor.