St David a damp squib.1 Mar 2023 18:16
St David's magic wand failed to ignite the shares of MSi which floated around the plimsoll line all day finishing flat on the session. It was a forlorn hope as the shares trended lower despite buys outpacing sells by 1•5:1.
As we know that's no guarantee of the stock being bid up. Infact they often fall back after concerted buying,
which flummoxes investors when this happens. Shouts of fixed, rigged, wtf, etc...miss the point. Market makers are there to oversee an orderly two way market and if that means lowering or lifting the sp to ensure fluidity, to attract sellers or buyers sometimes at their cost so be it, its all part of the risk reward game.
At least we know the stock atm has few conviction buyers, so in the short-term prices are unreliable and can make illogical movements to catch the unwary out. I try to not read anything into jobbers reasons for pricing shares but buy purely on cost & value regardless. If they can pay their way I'm a buyer in most circumstances.
Finally as a part owner I may receive dividends, enjoy capital growth, get preemptive rights (first refusal) and other shareholder perks which can incude discounts on life insurance, credit on cruise liners and a wide variety of other come-and-buy-me-gifts.
These can often sway you to buy shares in these gift-offer companies. Truman breweries were a popular share to own back in the day hic,hic...and i enjoyed many an AGM in the City. When Grand Met took over I sold my shares but joined the company.
If your lucky you may receive an agreed or hostile take-over and under the code if 30% or more of the voting rights in the company are acquired a cash offer must be made at the highest price paid for your shares over the last 12 months. In certain circumstances this rule can be waived so best brush up on the latest regulations as the code is voluminous.
To date MSi has more than delivered and I dont rule out an offer for sale leading to a full blown take-over. I believe the current wobble is just a short-term blip on a long-term value increase and see no reason not to hold and buy when practicable.
Evening all.
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