TCL's upward boost Thursday occurred after the book build results were announced (i.e. significant premium to $6.75). Similar price rise earlier when the book build result for unsold insto shares was announced. Each revealed insto demand for the stock.
No question that TCL is a superfund favorite. It's predictable distributions and longer-term growth (new routes/tunnels coming on stream) are just what funds need to satisfy their clients.
In fact, I didn't realize until this month that the (industry) superfund to which i contribute is TCL's largest shareholder, and took up the full share offer. (I also hold shares in my non-super OZ portfolio.)
That's why i was surprised that Morningstar recommended against taking up the share offer. (But Morningstar's advice is often questionable; they also discouraged buying Fortesque last June when it was $3.40 and discouraged buying APA when it was $5.90 in late 2013 -- I ignored their advice.)
TCL's sp might fall, but the book build results suggest that it may have at least stable pricing around current levels.
TCL Price at posting:
$7.43 Sentiment: None Disclosure: Held
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