South32 Share Discussion Threads

[anley2] 15/9/2015 16:10

Thank you for your post but it tells us nothing NEW!!

[time_traveller] 15/9/2015 15:22

www.fool.com.au/2015/09/15/is-the-18-5-fall-in-south32-ltd-shares-a-buying-opportunity/

[anley2] 15/9/2015 14:15

Good point but lots of small shareholders are getting out or are being frightned out of the stock. At the same time there is also some long term buying and I am one of those.

I have given my reasons and am cost averaging and will do so down to 65p. But as you say the markets are irrational.

[time_traveller] 15/9/2015 11:49

In three months, S32 has underperformed BLT by 12%. And thats without the debt and dividend burden thats its parent has. It seems irrational.

[anley2] 15/9/2015 10:55

Thanks for that so I have cost averaged on my holding at current prices.

I see you have a new PM who made his money in the dot com boom. Will be interesting to see what he has to say about the metal and mining industry in OZ.

[arja] 15/9/2015 10:22

inevitable fall today to almost in line with OZ close of about 70.6p. Drifted down all day in OZ and might continue south tomorrow . Assume base metals took a pounding ?

[arja] 14/9/2015 08:16

hi Anley2 - good luck witb it. I just trade resource stocks but prefer to trade this stock in OZ where biggest volume is .

[anley2] 10/9/2015 14:55

Hello ARJA - I have just bought in at 77p after reading the balance sheet and noting that cash flow is reasonable and there is no debt. I wont go into other reasons why I have bought but will carry on down to 65p if needed and then wait.........its a new purchase punt for my special situations fund.

[kingsize] 10/9/2015 05:07

ADVFN is recording a purchase of 4.5M shares at 167.5 - wouldn't we all love that to be correct!

[arja] 08/9/2015 09:54

oz is lead market for this stock and closed there at 74.40 equiv. But dow futures has taken off since OZ close and hence punters here took it up to 76.75 . I got out at 76.25 after buying in auction and look to buy a few to take overnight if it falls much more . OZ chart says a move to 170 resistance is likely
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[dunns_river_falls] 08/9/2015 09:09

looking a bit perkier of late here

[urgentclick] 18/8/2015 13:54

Down down, always down for this stock. What a disastrous spin off for share-holders.

[urgentclick] 03/8/2015 12:44

Kiss of death to call this South32 should have been called GalacticInfinity IMO

Or how about DeepCavityExtraction? Or for the computer chip relationship: upgrade to North1024

[careful] 17/7/2015 13:21

south is heading north.

[big7ime] 17/7/2015 12:02

Instiis mopping these up, see the 2m trade

[big7ime] 15/7/2015 15:08

Watch for Delayed trades, big inst buyers place an order, mms fill it
Otherwise How do you explain the price rising
Must be 5% yld now

[urgentclick] 15/7/2015 14:19

Still, almost all transactions are on the sell side. Clearing out the retail traders? How long can this imbalance between sell vs buy go on?

[urgentclick] 15/7/2015 11:01

Large buys? 95% sells so far today. But it could be stock accumulation at a low price by the professionals since the price is holding. From the chart, I think that we are around the floor for this stock, but I could be wrong.

[big7ime] 14/7/2015 09:10

X2 rumoured to be potentially launching a bid
There's definitely shares being mopped up today, wouldn't be surprised to see some large buys recorded late

[urgentclick] 08/7/2015 15:22

Looking forward to more take-over bid rumours to finally get the stock to go up a tad.

[urgentclick] 07/7/2015 16:30

Is this a penny stock yet?

[darias] 02/7/2015 08:47

BLT is not thriving following the spin off and still there is no reason to add from the company.

When will they put out a trading statement at least.

[scotches] 30/6/2015 16:52

There's that Greenblatt reference from Jombaston above - interesting theory.




The Inefficient Spin-off (AND A Possible Opportunity for Patient Investors)

According to Joel Greenblatt; “One study at Penn State, covering a twenty five-year period ending in 1988, found that stocks of spin-off companies outperformed their industry peers and the Standard and Poor’s 500 by about 10 percent per year in their first three years of independence.” Why is this? For many reasons, but particularly;

“The spin-off process itself is a fundamentally inefficient system of distributing stock to the wrong people. Generally, the new spin-off stock isn’t sold; it’s given to the shareholders who, for the most part, were investing in the parent company’s business. Therefore, once the spin-off’s shares are distributed to the parent company’s shareholders, they are typically sold immediately without regard to price or fundamental value.” Also “many funds can only own shares of companies in the Standard and Poor’s 500 index, and that index includes only the country’s largest companies. If an S&P500 company spins off a division, you can be pretty sure that right out of the box that division will be the subject of a huge amount of indiscriminate selling. Does this practice seem foolish? Yes. Understandable? Sort of. Is it an opportunity for you to pick up some low priced shares? Definitively.”

[jombaston] 30/6/2015 12:57

It is not unusual to see selling pressure in spin-offs where a parent company has distributed shares to shareholders. Many reasons for this including institutional shareholders with shares outside the index/too small mkt cap, investors unfamilar with the company, too little info, too complicated prospectus/listing particulars etc. Sound familar?

The bad news is that these shares can underperform for months or even a year. The good news is this can present very rewarding returns over longer periods. Don't take it from me - read the experts. Greenblatt for starters.

So no rush to get in and if you are not a patient investor, forget it. I am scaling in myself but if the directors start buying then don't hang about.