Don't you think these brokers are making up these values to try to help their high paying clients get rid of the overhang from the bookbuild etc? That is how they make money
If a broker suggests a high price any time after corporate activity, that means strong sell - as desperation (and angry phonecalls from clients) is creeping in. I'm shorting this one, as there are more signs of desperation.
Somebodies were trying to manipulate the price on open today. A huge pile of buy orders disappeared a minute before open, and indicative auction price went from $6.18 down to 5.75 in a flash pre-open. A lot of desperation shown here, so I am shorting this one.
The number of shares on offer doubled approx up to 16/11, and it will take a long time for the overhang to disappear. I think the SP will try to stay above $5.65 (SPP price), and then will give up! It is already severely underwater from the bookbuild price of $6.50 that institutions paid.
Might I eat my words? I'm doing some fundamentals on this one now, and will report what I find.
This one is a very dangerous hold in my opinion. If you have no reason for owning this other than "looks cheap" then you should do some sums. This is priced on a good year of income. When you look at the reasons for a good year - you should include an Aussie Dollar at under 70 cents for quite a time - now at about 90 cents. I would think that will mean a bad year coming up!
DYOR
GNC Price at posting:
$5.68 Sentiment: ST Sell Disclosure: Held
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