You are right that the high level of funds redemptions in the US are contributing to the downward pressure in prices. I don't think this is the main cause, but it is certaining a factor. Is this same thing happening in Australia? I don't know. Perhaps Colonial are suffering high redemptions. If so, then they need to sell stocks to pay out investors, but they have a large portfolio, why pick on MIG, why not spread the burden?
If you go and look at the history of ERG & PWR you will see that Colonial were initially supportive shareholders who bailed out shortly before the stocks tanked. Colonial analysts have access to people inside the companies. They have more information than we do. They can spot trouble that we retail investors will not learn about for months. As a general rule, don't buy if Colonial are selling.
MIG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
