Forum Archive Index - December 2000

["hugh webber" <hugh.webber@clear.net.nz>]

Dear Sir/Madam,

I'm struggling to follow the machinations of what economic
theory fashionably holds to be an intelligent informed market....
APH which is into the trendy retirement care industry as well
as development of the fringes of the upmarket Katoomba Golf 
Course in the Blue Mountains listed today - at 24cents after
consolidating its shares 1 for 4.

Previously it was trading steadily on the informal market for
7 cents which was the price you could get them at in its cash issue.
Now I'm not advocating that they are a good or bad buy, I'm 
just cynically amused in the same way I hold a few Summerfruit 
Orchard (there's a new wonderful story each year as to why they
crashed and burned due to rain, lack of rain, insects, frosts,
bird strike, low prices & &) Spectrum and Wilson Neill for 
occasional laughs. (I do have other serious larger holdings elsewhere
but they're not for the laughs).

Here we have some presumably sane APH shareholders who 
bought them for the equivalent of 28 cents on the informal
market and now flogging them off on listing at 24 cents - 
to take their profits?
I mean its only a small company with small shareholders,
I can't imagine anyone would be so short of ready cash that
they'd have to sell.....they'd get more upending their piggy bank. 
If they really wanted to profit take then they could have sold 
them anytime in December for 28 cents on the informal market...
why leave to the 1st day of listing to do a lemming like rush at
24 cents?

Puzzled,
Burnside



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