Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Big institutions, fund managers who will have the biggest holdings are the smart ones who qualified for the rights offer, so selling their market holdings high and buying them low to fund TUI coffers is a clever market strategy. Holding too many because of the 8-3 rights makes it prudent to sell their holding. Suspected this but never had any idea it would play out like this.
people simply cannot handle RED on their portfolios. I was one of those years ago but now I see Red on a FTSE250 stock as a golden opportunity when nothing makes sense is the best time to add. The co. is not on its knees, hasn't issued rights due to its dire situation. It's the complete opposite, so I just got my extra 250 shares and need another 250 if it goes lower. Then a well-deserved breather and medium hold for the rebound. Thats my strategy, it may be wrong or it may be right. Selling is not an option for me.
I will play too for a good chunk tomorrow if it drops. Sentiment, less debt and a damn good Summer is no longer being factored in so something behind the scenes is being played and is being played well. MKt @ £1.8bn + £1.8bn RI, so its £3.6bn Mkt with half the debt. Doesn't make sense with whats going on.
and that's why you trade the technicals and not the news. It's a gold mine opportunity if you have nerves of steel, which many shareholders do not. There will never be a better opportunity to grab shares now and enjoy the windfall later.
Only worried will be the way Mr Market plays the system after to get the mates rate for any overhangs and manipulte the price. Well Mr Market, Mr Investor is ready to play that game too so looking t o load up big time if this goes volatile.
Selling Terps makes sense and buy back cheaper..this I would only suggest works well for desperate companies to shoe up balance sheets. TUI is doing this to repay a Loan, so I don't believe the desperate situation exists here. Might be wrong but I will hold my rights as the pre-close price last night suggests alot of people/funds want the rights and were scrambling to take part, not play the common shareholder game. Foresight maybe or fool. Cal it what you will but Im holding 100% either way.