Price of a share .. Non Voting Vs Voting

investor1984 · 1 Price of a share .. Non Voting Vs Voting Sun Jun 19, 2011 7:53 pm

investor1984

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last week we saw big gains by BLUE.N. It was a puzzle to many as BLUE.X didn't pick up as much as BLUE.N did.. The argument was that Voting share do get appreciated because collecting it will give the control of the company to the party who is eying for the control.

Blue.N trading at around 3.4 times of value of Blue.X
LGL.N trading around 1.33 times value of LGL.X
SEYB.N trading around 2 times of value of SEYB.X

what is the rationale behind the pricing of Voting share against the Non voting share.. How can we find out whether the Voting is over or under valued compared to the Non voting... ??????

xhora · 2 Re: Price of a share .. Non Voting Vs Voting Sun Jun 19, 2011 8:37 pm

xhora

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as a rule of thumb
non voting price = voting price X 1/2

also see this
http://forum.srilankaequity.com/t2075-comparision-of-voting-and-non-voting-share-prices

Prince · 3 Re: Price of a share .. Non Voting Vs Voting Sun Jun 19, 2011 8:40 pm

Prince

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Also depend on the share volume. Some stocks have equal amount of X shares but some have lesser X shares than N shares.
Stocks have lesser X shares normally trade around N shares.

aladdin · 4 Re: Price of a share .. Non Voting Vs Voting Sun Jun 19, 2011 9:22 pm

aladdin

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Prince wrote:Also depend on the share volume. Some stocks have equal amount of X shares but some have lesser X shares than N shares.
Stocks have lesser X shares normally trade around N shares.

aniwa defa.

Share Volume 31,438,400 - Blue.N
Share Volume 52,944,700 - Blue.X

This means the Blue.X has 60% shares than the Blue.N Therefore considering that factor only the price should be 60% less than the Blue.N. If so the Blue.X should trade at 6LKR if you assume it has voting rights. But since the normal belief is that a none voting is trading at 50% of the voting, this should be trading at 3LKR.

Hope you understood what i said. Blue.X selling price 1st should come down to 6LKR depending only the number of share basis. Then the voting and none voting factor comes in. In such case it should be trading at around 3LKR if the Blue.N is at 10LKR.

Now please do not give negative votes since this is not a promotion or a buy sell or hold signal.