Dear Friends,
I feel sorry about people who did “panicky selling” on the first day trading, and also about people who would sell without a good profit in view of SHL.
WHY am I telling so?
There can be two reasons for SHL to come down below IPO price:
1. Financial Crooks, who had private placement earlier, might start selling and the price level came down. (Then, why did they start it from Rs. 25?)
2. SHL itself might start selling to get the price down, because of the Reverse Theory in IPOs.
What is this jargon?
As retailers, basically we buy first, and then sell. But, for IPO handlers – they can sell first and buy later, which means in case of SHL:
No shares traded so far - 79,913100 Turn Over - Rs. 1,83,5157504
Average price per share - Rs. 22.96
In Reversed Theory: SHL IPO handlers have bought at Rs. 22.96 and sold at Rs. 29.
The profit per share - Rs. 6.04
My Observations:
1. As per the first reason, if those financial crooks are selling continuously, the price level can come down further.
2. As per the second reason, If it leaves 20% for day traders or panicky buyers, SHL IPO handlers have collected 63.9 million shares (80% of 79, 913100), at an approximately a profit of Rs. 6.04 per share ( Total - 385.9 Mil).
Therefore, SHL IPO handlers can bring upon this share at Rs. 35 levels (29+6.04), without losing any cents, and from such level - they can decide whether it should go up further or not (approximately 63.9 Mil of share fluctuation from Rs. 29) or can maintain 29-30 with a huge profit.
With the present trading pattern, IPO handlers can hit 29-30 levels by one shot. But delaying the process may give more chance for financial crooks to manipulate further, and to get the price level down. Then, the public interest and confidence would drastically go down and they may go away and SHL would be out of focus. Anyhow, now, the momentum seems OK, but we can’t predict how far they may focus it or go away from focus. That is up to them to decide.
Moral and ethical obligations are imperative in any business, and the nature will punish those crooks, in different ways at unexpected times, who manipulate the genuine interest of poor general public - honestly invested in the company.
This is merely an academic analysis and copyright reserved for “Reverse Theory in Marketing”
This posting is not meant for any buying or selling of SHL shares, but for your genuine comments please.