Morning Report Monday 24 November
*Our current format has been to cover an international stock on Monday mornings, however so much specific news has occurred in the last 48 hours that I thought I would address it individually this morning.*
The government has had a bonanza with Medibank (MPL), issuing the stock to retail at $2 a share and institutions at $2.15 a share, at the 100% top end to the retail investor – thanks for nothing! I made some cynical comments recently about the 29% spread between the so called price issue to retail investors of between “1.55 and $2”Unfortunately, these appear to have been accurate with the $2 issue.
I believe Medibank will trade at a premium to NIB Holdings Ltd (NHF) e.g. at current pricing 15% premium is $2.15, I can see NHF trading up to $3.60 (chart 1) into Christmas potentially taking MPL up towards $2.42.
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