Given that we have been discussing what the possible direction of the MPL share price is going to be down because some consider its peers have lower share prices and some are speculating that MPL sp should drop lower, however I would argue that MPL may attract shareholders who don't analyse the sp to be worth on the same basis as those believing the sp to belong under the $2 price level because Medibank has such a high exposure that it has acquired a " Coca Cola" type premium attached to its share price. Unless the brokers can move substantial numbers to sell 50% of their holdings as one shareholder said he had been advised to do so. We might be seeing this wave occurring now with the price dropping today.
Whilst I might agree the MPL may be currently overpriced and so do 1329 shareholders wanting to sell 12 million shares today overwhelming the much fewer 472 buyers for 4.365million shares imo it may still continue to move between $2 -2.50 per share until the profits performances are announced and if the profits are less than expected then i'd see the price dropping below $2 or thereabouts. The problem with Insurance Company profits is that they can be manipulated by changing provisions and maybe Health is different to General Insurance or as with banks they can manipulate provisions for Doubtful Debts and thus declare higher profits when lower profits would have been more accurate.
Just my private view without the benefit of charts but interested in others opinions on debating where the sp should settle over time.. DYOR
Add to My Watchlist
What is My Watchlist?
