Forum Archive Index - August 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Bought back by RBC:

 

Week 1:                       17.11     mill. shares

          2:                        4. 092                   

          3: ( This week)      5.877

 

A total of  27.079 mill. shares or 36.6% of the app. 74 mill. wanted, have been bought back.

 

The first week saw a parcel of over 12 mill. sold. Apparently, RBC is prepared to pay an extra cent for larger parcels:

 

One parcel of 2.414 mill. was bought today @ 81 cents.

 

Gerry

 

 

 

 

 

 

 

 

 

 

 

Total                             21.202 mill. shares. ( 28.6% of the 74 mill.bought )

 

Original total to buy: Approx 74 m. Left to buy: 52.8 mill. shares.

 

Outlook: Friday's buyback was not recorded till this morning ( About 1.486 mill shares @ 80 cents).

 

RBC is now in the 40 index; this and the buyback act as props to keep the share price at 79-80 cents. ( Institutions would have obtained sufficient shares some time ago and the additional listing in this index may not have a profound impact, I think ).

 

Theoretically, the share price would rise if a significant portion of shares were deleted by the buyback over a short time.

 

However, the buyback is proceeding at a reasonable slow pace and seems designed to cover a more lenghty period to further developments. That is a sound tactic. The total buyback will be about 21% of the original 352 mill. shares.

 

I expect RBC to keep selling @ 79-80 cents ( 81 cents for a large holding ) till we get closer to any developments.

 

Gerry

Holds RBC

PS: FFS/ FFSPA and RBC holders may want to refer to: " RBC buyback: Calculations needed ", dates: Aug.11-13, 2001.