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From: | "tennyson@caverock.net.nz" <tennyson@caverock.net.nz> |
Date: | Thu, 6 Mar 2003 13:36:45 +0000 |
Hi hello, > >I don't get their strategy. > >Buy high, sell low? > >Can someone explain that to me? >-- > I imagine it is some kind of risk minimisation strategy. The logic being that if a share drops suddenly in value there must be some 'insiders who know something' and so you should get out while the situation becomes clear. I imagine fairshare ignores fundamental analysis as if they had done any on RBD it was clearly a much better buy at $1.25, than at the $1.55 or so they bought in at, or indeed the $1.70 or so where I made my most recent purchases.. I did read the fourth quarter RBD sales report. There was a bit of a worry in the decline of KFC sales, the main cash cow of RBD, during the quarter. But given that KFC stores are in the middle of a refurbishment program that closes stores for a week (being 8% of the time in a quarter), and they have cut back on their cheap meal coupons (the ones that used to come through my mailbox at least), this might explain why RBD are very adamant that their decline is temporary. RBD does seem to get its share price bounced about a lot by speculators. At $1.25 you would have to balance the risk that the share price might go lower verses missing out on the 12% dividend yield if you don't buy. But if you don't think 12% is good enough for you and you don't see any long growth upside in the share then I guess you would sell at $1.25 ;-P SNOOPY discl: hold RBD --------------------------------- Message sent by Snoopy e-mail tennyson@caverock.net.nz on Pegasus Mail version 2.55 ---------------------------------- "Dogs have big tongues, so you can bet they don't bite them by accident" ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/chat/forum/
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