Phumelela worth a punt at that price

The Phumelela share price dropped over 30% about 1/2 hour ago and traded at R 7 a share. At a dividend yield of 9,2% based on this price not a bad investment, since the dividend has to be maintained to pay the Racing Trust who in turn fund racing.

It dropped over 30% and you say "not a bad investment". Why on earth did it drop 30%?

No obvious reason, but property value alone worth at least R 7 per share, while the business is a monopoly cash cow. My screen now shows buyers wanting to buy at R 9 per share.

Gajima Wrote:

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> No obvious reason, but property value alone worth
> at least R 7 per share, while the business is a
> monopoly cash cow. My screen now shows buyers
> wanting to buy at R 9 per share.


Snooze you lose !! When i read the post i went straight to my account but all my pennies are tied up :X :X

Interesting share movement. Not a huge number of trades but it does appear strange that the price needed to go as low as it did to flush out sellers.

Certainly one possible reason is speculators climbing out as the dividend was paid on May 25th so that money may well have moved on to the next short term opportunity.

30% is a large drop in a year...never mind in a day?
On the principle of supply/demand,unless you are very sure why someone is dumping .......beware!
There is a lot on the go ..........investigations into racing/corporatisation ,new licences......I would tread very carefully!

In any event Warren Buffet's advice "forget the financials,don't invest in a company unless you respect the management"..........................thats enough for me to leave well alone!

I would guess that the reasons will become clear in the near future.

I've seen some of their starting prices drop by over 30% after the off

BTW I see that drop in share price was 35.......cents not PER CENT..................considerably different!

Ah that makes sense now

Don't touch it!

Hahahaha.... But if I keep losing my Pick 6's wouldn't it be clever to buy some Phum shares and recover some of my Pick 6 losses in dividends?

rob faux Wrote:

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> BTW I see that drop in share price was
> 35.......cents not PER
> CENT..................considerably different!


Unfortunately Rob, it is not that simple. There were 4 "deals" put through at around R 7 per share which were quickly reversed but the whole exercise resulted in the share price showing as having dropped by R 3.35 for some time before a real deal dropped the price by 35 cents. Would make a good case for a conspiracy theory.