Forum Archive Index - December 2000

["John Ascroft" <jascroft@jade.co.nz>]

I am not suprised to see the price improving (relieved yes, surprised no).

If you go back to the pre issue days the shares traded in the .65-.75 range for 
5 months, then the issue was announced and they dived. If the market valued the 
shares at say 70c, then we would expect to see the current shares struggle up 
to 40c (70+2*.25/3). I am sure the drop to 25 was an extreme reaction from the 
holders that didn't want to take up their rights.

The holders that DID want to take up their rights then kept the price at the 
25c level, because every time it dropped to 24, it made sense to pile in, there 
is no need for a conspiracy theory or anything, just the normal market 
mechanics.

disc - hold ffs and ffspa


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