FID

0.25%

$8.18 fiducian group limited

Solid result from FID, page-16

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24/08/20

11:09

Post #: 46762536
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Originally posted by madamswer: ↑

On the subject of illiquidity in the trade of stock, I think one needs to distinguish between "good" and "bad" illiquidity.

"Bad" illiquidity is when it is impossible at any time to buy shares in any meaningful amounts (for example, to build a $1m position, in the case of a small, or micro-cap fund, or a high net worth individual).

But that isn't the case for FID, where at certain times turnover in the stock does rise appreciably, for example in March this year and September last year when a few hundred thousands of shares traded each day for a while.

"Good" illiquidity means that it does not require much in the way of net buying to restore the stock to reasonable valuation levels following any meaningful sell-offs.

So I feel FID's liquidity is just right for someone who feels that the long-term earnings of the company will be meaningfully higher than they are today, because along the way bouts of selling will impact the share price, thereby providing excellent opportunities to add to holdings, while there is sufficient liquidity to attract decent sized investors to subsequently restore value, so that the stock doesn't remain permanently undervalued.

In other words, illiquid enough to fall quite hard on indiscriminate selling, but not that illiquid for no one to subsequently care.

.

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You make some compelling points. But being able to cash up a large position easily when you spot a black swan coming your way (divorce, Covid etc.) and buy back in at much lower price afterwards does provide a level of comfort that is in short supply with FID. However, FID really is a gem and a terrific LT hold - and I agree that its illiquidity is the 'good' variety.

FID Price at posting: $6.03 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $8.18		Change 0.020(0.25%)		Mkt cap ! $257.4M

Open	High	Low	Value	Volume
$8.18	$8.19	$8.03	$80.87K	9.996K

Buyers (Bids)

No.	Vol.	Price($)
1	243	$8.06

Sellers (Offers)

Price($)	Vol.	No.
$8.19	816	1

View Market Depth

No.	Vol.	Price($)
1	243	8.060
1	750	8.000
1	640	7.810
1	9700	7.740
1	4000	7.710

Price($)	Vol.	No.
8.190	816	1
8.400	3500	1
8.440	2774	2
8.450	2500	1
8.500	9651	1

Last trade - 16.10pm 30/08/2024 (20 minute delay)

FID (ASX) Chart

Solid result from FID, page-16

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Solid result from FID, page-16

Top Stories

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Lendlease sells off US east coast construction operations in latest global divestment push

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Featured News

Buyers (Bids)

Sellers (Offers)

Featured News