ProverB wrote:mlennyma wrote:Demand/supply...big share holders can really frustrate a shares movement and make it to ignore fundamentals just because they have huge chunks to dispose.
i disagree.. unlike retail traders/small shareholders..minority..u and me..
..managers of huge chunks have a "fiduciary" duty to benefactors in investment choices..and must explain action..to stiffer bureaucrats and uninterested stubborn directors..add boardroom politics to the mix...it is mighty difficult to deviate from fundamentals
it is little traders that can go totally technical analysis and ignore fundamentals..
Institutions rarely trade..or rather trades are really spread and far apart.. individuals? well..we still cursing the T+3 waiting period in order to make next decision on the same counter!
@ProverB, mlennyma is of the view that Equity should be trading at a higher price on account of its fundamentals. In his view, which I share, the only reason that it is not is that there are some big sellers (may not actually be institutional) who are stuck at 27. I am otherwise in agreement with your argument above.
BTW, where do your shares clear at T+3?