Who's the lil sook who moderated me? Grow up.
Right, my two cents again and I will caveat this post by saying I bought again today so don't @ me...
(1) I don't think it was Big US Fundie friend buying in today with that XT, I think it was a broker to broker transfer in prep for the index inclusion which are very common around these rebalance dates and the fact it happened today right before we get included makes me lean this way.
(2) I don't necessarily like these inclusions nor think they are good things... They are a factor of your company being good and worth being included, not a driver so IMO they are just window dressing. IHL would still be a rockstar company either way and these have some negatives attached too. Reason I'm not a huge fan being is that funds (super etc) that require certain exposure / weighting to XAO companies can only buy in a certain period up to / after the index rebalance (believe they get a small grace period after the rebalance date). So brokers / instos that know a stock is getting included sometimes pump up that share price so they can cream off the top offloading to the funds that need to purchase. This I believe now has happened to IHL in the lead up to today and explains the spinning top yesterday and dump today IMO as someone offloaded nicely. Obviously not all of the build up is this and the US investor / OSA build up certainly helped + macro events today were probably a bit much on the downside. But after Mr USA Whale loaded up to the gills, there was some support along the way in pumping us 60% over a couple of weeks. Conversely, now we are soon to be / likely in the period when funds can buy - they don't care about the funnymentals of IHL or other companies being included. They have to buy and make money off the stock, and they really don't like the price being this high. So when we do hit buying period, expect more fun and games as they have much more power to play around with our baby.
(3) Totally happy to be completely wrong (would love love love it) and the Broker Data Wednesday showing it was Merrill again (lord knows I've got enough IHL exposure across SMSF, Investment and Trading accounts), but I'm not convinced and unless Jazzy Joel and the Sudmeister have some more rockets up their sleeves, then we might see a period of squeeze / consolidation and head back to mid 50s area. Actually flip it, no rockets - just flipping drop OSA already. It's late enough already, (anyone ever heard about a 2+ month lab delay on compiling results?) and that's all we need.
The above could be 100% wrong, but just putting in an alternative option that could have occurred.
Cheers,
SforP
