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Online Share Trading

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What's the Dirt?

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Ega
Super Contributor
Any info on this share, other than director bought 45.5 mil at R1 ?
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4 REPLIES 4
topgun
Super Contributor
I would also buy that many at that price (100 cps)- at 180 cps it is a different story. I would wait a while for the share to settle as the easy money has been made by the stags.
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Ega
Super Contributor
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Agree. Easy money has been made and mostly by the investment houses - only got less than 5% of amount I requested in placement. Must be great working for an investment house - place shares at way below value to create hype - make placement so oversubscribed that only investment house with deep pockets is able to get decent chunk and then lists making 70% - 90% profit. This share is now trading on a PE of 16.3 (same as Envioserv who are much larger and pay a 1% div) and a forward PE of 15.4. Great sector but would wait till softens. Easier money ACT, PSV and MYD.
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I agree the easy money has been been made but then again that may be a bit short sighted. I'm sure they said the same thing about SXR when it listed and then jumped to R2-R5 and then the same thing as it continually grew to over R100 ... one never knows. Personally I think someone who is waiting for it to drop to its original levels of R1 is a bit greedy. A turnover of +600% (if it goes like enviroserv to levels of R12) is not bad in anyones book....some (actually most) fund managers dont get that in 4-5 years not to mention one. A good share/business is a good business regardless of the hype. Its a solid business with good prospects. Waste management - comon south africans are some of the most wasteful creatures on the planet and its only going to improve business as construction for 2010 and beyond heat up over the next two years leading up to the world cup ...ask yourself why many big institutions were willing to buy bucket loads of the share at a rand - I'm telling you now that it wasn't for an 80% increase overnight. That was just a benefit. Bigger things are install for this company otherwise we would have had a larger sell off at opening by the ones who got in at the R1 levels leading to drastic price drops ... Look at the market depth of the share at the moment - people with the shares arent budging for less than R1.85 ... the supply of the few shares available at R1.70 is dwindling and should be gone by weeks end and then it will just be matter of time until acquisitions are made by the company, and then all thats left may be the regret of not buying the share at its current price of a mere R1.70 ... but thats just my opinion cos no one can predict the market ... Good luck
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