Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.