Share price reflects strong investor confidence
A LEADING investment expert in Toowoomba believes the strong performance of Wagners shares on the Australian Stock Exchange reflects investor confidence in the company.
Wagners shares closed at $3.72 yesterday, more than 10 per cent above the initial listing price of $3.31 on December 8.
At one point before Christmas, the shares were trading at $4.
Dornbusch Partners’ investment adviser Andrew Wielandt said while the strong showing was an indication of investor confidence in the business, the choice to float in December had also helped support the price.
“In the finance world, usually from December to about when the Australian Open starts, there isn’t a lot of volume, (because) people who follow it closely won’t be back at their desks until later in the month,” he said.
“December is the second-best month of the year, because there are less sellers and unless there’s some big-picture problem, everyone downs tools and that’s one of the reasons the market has a stronger month.
“They timed it well.”
A top adviser for Morgans, who helped organise the Wagners float with Credit Suisse, called the company a “truly great Australian company” in an investor newsletter, urging clients to buy or hold shares.
“I just think in five and 10 years’ time the share price will be multiples of what it is today,” Geoff Voller said.