Forum Archive Index - September 2001

["DR" <kat47@bigfoot.com>]

OK GPG is in the UK market in a big way (for them) but they are not going to do things quickly.

They represent only 0.9% of their sector and the sector is only 1.1% of the total market which makes them quite insignificant other than on a bidding basis for a particular share.

Some scary Friday stats.

At 9.30 am the FTSE 100 had 97 falls and 3 flat. O rises.

At the end of day, only 1 big rise was Vodafone (+12.3%). Of the others BT (telecoms) was up 4.3% United Utilities (water) up 3.0% and NGG (electricity) up 4.08%.

The market is now in panic mode. Small investors have fled, institutions can sit on their hands but only for so long.

I have it from one large institutional source that the traders were offered only £1.3m against a buy order of £20m for a gilt (govt bond)

I can quote at least one sound share which has a prospective 2002 PE of  almost 1. Even if their business is reduced significantly they should justify a 100% price rise within 6 months. They have fallen 75% in the last 6 months without a profits warning. They do have significant borrowings but also a lot of cash because of recent structural adjustments.

Ther is no credit in this market for these types of actions, however successful.

D.