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Author: wayjo One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6186  
Subject: ARB - How the Funds Buy Date: 1/30/2002 8:01 AM
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Thought Barcoo might like this one. Perpetual Trustees became a 10% shareholder in ARB Ltd last Thursday and the following table shows how they bought their stake.

Perpetual have put the holding into 2 funds - Industrial Share and Smaller Companies Fund. These are the transactions for the Smaller Companies Fund

27/09/01 Bgt 13,000 @ 8.72
11/10/01 Bgt 24,000 @ 8.72
16/11/01 Bgt 65,000 @ 9.70
13/12/01 Sold 2,924 @ 11.73
14/12/01 Sold 1,240 @ 11.74
31/12/01 Sold 2,000 @ 11.55
03/01/02 Sold 1,000 @ 11.61
04/01/02 Sold 630 @ 11.60
14/01/02 Sold 2,439 @ 11.38
15/01/02 Sold 1,000 @ 11.27
16/01/02 Sold 1,000 @ 11.27
21/01/02 Sold 1,000 @ 11.37
23/01/02 Sold 1,330 @ 11.27
24/01/02 BUY 18,000 @ 11.02
24/01/02 BUY 6,000 @ 11.02

At the end of the day they have 111,437 shares in this fund at an average price of $9.42 per share.


I think the lesson in these transactions is that while Perpetual looked like they were selling because their buying had run the price up at the end of last year, they were really only selling the market down so they could buy again. ARB is thinly traded so the volume they were selling would be just enough on a daily basis to put a bit of weakness into the market price. I have had a broker tell me they can see the stop losses and sometimes will trade to knock these stop losses out of the market in thinly traded stocks. How true and common I don't know.

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