I think it's fair today you got your intrinsic value wrong!! What's happened to Infinis is nothing to do with the MMs! The equity was overvalued to begin with; it gets hit by the RO rebranding; then by the elimination of the RO early; then by the removal of the LEC. It's a highly geared equity because of the project finance and bonds and its halved. That's it. No conspiracy. You got the initial value wrong then you got a Tory government which hates renewables. Bingo 137p. Now its cheap. Buy some!
NA100: I also took out the bulk of my cash earlier this year for similar reasons. Over a lot of years I only made a very small profit overall, therefore a loss taking everything into cons. Put the bulk into property now worrh 18% more. Have only a small stake in a number of stock market entities.. Like you I won't be putting my money back in shares, thats for sure. Let the greedy p'gs devour themselves, I'll just be prodding them on their way. I give Infi a Strong Buy opinion as I believe it is, (but for the antics of the mm's). Can't be trusted to do their job properly. As for the FCA, seems they think they are just 'extra tax' collectors for the government I fear that they fear a market crash. Notice the FTSE is still the same as it was pre 2000 yet property prices have boomed despite the 2008 problems. That explains a lot.
Whatever happened to fairplay
As a long term investor in Infinis almost 2 years now and having lost 10 k in the mm play a few weeks back I was hoping to recover a few of my losses with the occasional little win. It really has taken until today for me to say never again. Whatever happened to fair play and market forces. When theres 3 times the amount of buyers than sellers the buyer is happy to pay the premium SP in the rising market. Its basic economics. For the mm to just alter a SP in a rising market doesn't make any sense at all unless its purely an excercise in shaking the tree to see who will fall out. Losing sight of the bigger picture and market gains from rising SP they prefer to lower the SP without reason, kill off the rising market and punish the investor for investing. All very well saying you need to be in it for the long term but if the mm keeps on reducing the sp everytime it looks like the markets rising who benefits as an investor it makes no sense to invest here.
Yes, exactly my point. What I see is mm's quite often arranging, (to put it politely), a SP sometimes regardless of its intrinsic value. Hence mm's adjusting this (and others) SPs in the direction that suits them, quite often out of sync with an intrinsic value.
You are confusing the intrinsic value of an equity with those who trade it. If intrinsic value (ie discounted value of future equity cashflows) is say 100p and the shares are at 50p then, all other things being equal, the shares are worth investing in. Market makers have no impact on intrinsic value assuming the Company's capital structure is ok.
Parkside you are quite right, with the further point, how does any pi know when to invest. What can they go on? Especially long term investment may well mean loss of all a pi's money in that share. Who can be trusted when it seems many purporting to operate under the rules, are not..
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