GLN

[Preston]

Lost 7% since listing at R54.00.

[kwagga]

This one is on my target list for 2014. Waiting for the selling to subside before starting to accumulate.

[Preston]

Kwagga, These shares are subscribed by institutional investors and fund managers. On day of listing, share price rockets to R55 and these guys sells 50% to 60% of their holding. Thereafter, at each strategic price point, these fund managers will sell 10% of their holding. Their collective action will drive the share price lower until such time , they buy buy back larger qty of shares with relatively the same capital exposure. Bring the share price back to listing price and sell the excess quantities thus making an almost risk free profit , which coincide with their holidays plan and fat bonus. It wil be interesting if the JSE could extrapolate the share holder register on a daily basis to identify these investors.(OMO)

[SimonPB]

the JSE could check share register, but is what you describe illegal ??

[Preston]

Not illegal. It does give one an idea of the playing field.

[SimonPB]

yip, the playing field is dog eat dog ..

[kwagga]

Preston - What you describing coincides exactly with what I've seen happening over and over again with new listings. I've kicked myself many times in the past for not investing (long term) early enough in quality new listings, just to see the price over the medium and longer term rise to a point where I have to ask myself how I missed this ?. This is one quality share I'm not willing to miss again.

[Preston]

@kwagga, Still a good price to get in. Basically buying it at a discount and you can use the listing price as base cost for CGT purpose. (please double check the validity of the listing price as base cost, i could be wrong)

[partridge]

I think this is a long term buy and hold - and even if the price declines a further 10 % it represents in my view another opportunity to buy.

[kwagga]

Well, I've bought this, and not planning to sell for the next 25 years. Bring on the divi's Mr Glasenberg.