It’s an interesting situation. The IPO was came in at the lowest end of the price range 260-310 and yet we were given to believe the IPO was oversubscribed (otherwise why would they ration the allocation for initial purchases over £1,000). I can only assume Barclays are still acting as a stabilization manger using up a portion of their 13 million shares. Having said that, there has been a distinct lack of volume today so Barclays would not have had to intervene. There are no broker views as yet so it won’t be high on many investors radar but you would have thought as one of the few recent IPO’s, the market would still be watching and waiting for an opportunity. Anybody any ideas on the stall on the sp?
Good Afternoon. I was stopped out @ 2.61 here. But isn't it true that stabilization is still in play by Barclay's, which stops large SP fluctuations ? Does anyone know how much fluctuation can occur within this form of market manipulation ? GLA still invested.
Infinis was never really likely to have the same massive uplift as RMG as there wasn't the same amount of rabble-rousing media coverage prior to the IPO. So I don't think we have to worry about the "lack" of huge uptake just yet. I think that until Infi has published the results of the first full quarter as a publicly traded business there won't be much interest. I think the market has a long memory and the fact that Infi is a Guy Hands/Terra Firma creation is a bit of a put off for some (for a lot?) after the problems with EMI. It's a case of "only as good as your last job". Another thing is that currently there seem to be no brokerages covering Infi, again probably down to a lack of financial results as a public company. Once the brokers start covering Infi there'll be interest from the investment houses and pension companies as they (are sheep who follow the herd)...err.. will have opinions that they can follow. So Infi needs to have at least a set of results for the first quarter, and probably a whole year as a public before there'll be real "trust" in it as a business, I think. One big thing that could possibly spell "game over" for Infi for the near to mid-term is the talk about fracking in the North West. Apparently the UK is sitting on potentially the largest deposits of shale gas in the western hemisphere and if the hurdles to getting that out the ground are crossed then that'd mean huge amounts of cheap, readily available energy in a form that is already known and used could come online. Who would need wind power and landfill gas generators then? Of course, the hurdles in place are huge, public opinion, environmental concerns, practical logistics and the rest. As the SP is no longer bouncing back to 260 I guess that means the price stability fund has finished, or been stopped so we are now walking the tightrope without a net. One thing to keep an eye on is that the clock is ticking for the UK energy market. More and more conventional power generators are going offline and there are very few replacements currently lined up to take their place. even then those that are likely to happen won't be in full production for upto ten years. That one big potential gap to fill in a world where energy usage is only increasing. As such, Infi "could" play a major role in plugging the gap in the market, at least until the conventional energy companies can make new capacity available. We "could" be at the start of something huge here, only time can tell. Just keep your eyes on what the news brings and be prepared to move quick, one way or another, if you feel the need to. Best wishes and good luck everyone.
I agree I don’t see any significant movement until the RNS on Friday and that will test the market. I’m still of the opinion they wouldn’t have taken the step of announcing they were going to issue the results on Friday if a) they didn’t want the sp to slip too much and b) they weren’t happy with the results. I still see this as a hold and possibly a weak buy sub 260 for steady but limited growth with excellent dividends, but as always DYOR.
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