I have a few randomquestions. These aren’t about anything specific, but just things that I havebeen wondering about myself and would love to hear what other shareholdersthink.
Tightly coiled spring
I have heard this phrase used in relation to Race. This is because there aren’ttoo many shares on offer, and a lot of the shares are held by a small number ofpeople (with a good understanding of the real potential). This does sound rightto me. I believe that if/ when good news drops the share price could go up quickly.But, I’m not a very experienced investor so curious if others agree? Is thisunusual compared to most other stocks? ie such a small hardcore following with manyretail investors.
Dr T
I’ve also heard people say thatDr T is still heavily invested to support their bullish views on RACE They alsoremind us that he has stated he will act in shareholders’ best interests. I dotrust him, but these two points seem naïve to me. Firstly, it seems to me likehe is so heavily invested, (and more importantly such a key figure) that he can’treally get out. BG selling is one thing, but I think Dr T selling would be disastrous.Surely people would find out quickly and it would be the worst thing ever forshareholder sentiment. If people knew that Dr T was selling then there would bea huge rush and the share price would collapse in no time. So, I see him kindof stuck with this investment for the time being at least. Is that wrong?
Secondly, people say that he and others will not accept a low ball offer becausethey have too much skin in the game. I don’t understand this. The more sharesyou have, the happier you would be with a low ball offer because even 50 or100% would be a great result. If I had 20 million in shares I would definitelybe happy with $4 or $5 per share. Do you really think they will reject such anoffer to protect smaller investors?
News due July/ Aug
What news exactly are peopleexpecting? I know there are some large announcements due, but also know thatthey time frames have been pushed back significantly. I am not expecting tohear anything significant in July/ Aug so I believe the share price willcontinue to flounder for the next few months. I feel like the sentiment onthese boards might be a bit impatient and based on the ‘old race’. Personally,I wouldn’t be surprised if a buyout takes 3, 4 or even 5 years. It feels likethose that have spoken to Damian have come away confident and optimistic aboutgood news mid-year but the rest of us don’t see anything to suggest that (apartfrom trips to the US).
12 month CGT
A while ago I think there was a feeling that people were keeping all of theirshares because selling out and buying back in would reset the CGT clock. Thevibe was that anything could happen any month now, so that kept peopleinvested. Although I believe people are being a bit impatient, I don’t think abuyout is likely within 12 months. So if I did want to sell my shares and buyback in (I don’t), I’d be fairly confident that I could do so and still have 12months for CGT. Does anyone else feel like this sentiment has changed, and whatcould the implications be? People will sell now if they think they can buy backin cheaper? More liquidity (less of a coiled spring)?
What do you all think?
(20min delay)