RE: Shares in free float10 Feb 2022 12:30
"10% p.a over 2-3 years cannot be taken as any guide to the future. "
Accurate or not, it only confirms that these are a much worse assets than equities, which has been the case for the last several decades.
It also suggest that the recovery here will take much, much longer than 2-3 years. If SGI's share price increased by 10% per year would if be attractive in comparison to buying 7-8% yielding assets that can be purchased at a discount? On a risk adjusted basis, with that growth, SGI looks unappealing to me.
The equity market in Germany is very underdeveloped in comparison, that's why historically Germans were big buyers of UK second hand annuities. That was my experience anyway. A group of "friends" acting in concert might be interesting. If they are holding close to the reportable holding level. It's another red flag given the poor liquidity. Pearls has already pointed out that a small, small sell trade can have a significant downside impact on the share price. It would be carnage if 2% came on the market, because of currency, legislation changes etc.
I and a friend held a large position in a mining company once, as retail investors, and contacted the regulator to ask what the implications were as we timed our trades/strategies together. As we jointly held over 3% of the company could we have been in breach of market regulations? I can't remember the outcome, but it's another thing to be aware off.
Interesting post. I've always been very concerned about liquidity. Red flags abound.
Huhu, you might want to check, if you intend to go above 3%. If it applies if your are working together. Market abuse regulations are complex, if you hold more than 3% as an individual it's reportable, at what point a group of friends might need to consider it, I'm not sure. If it's a "share club", which has a definition, then my understanding is it's potentially reportable at 3%. I may of course be completely wrong.
Sign In
Follow the stocks
