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FXI IPO - Fox Invest

Discussion in 'Shares' started by crc_error, 18th May, 2007.

  1. crc_error

    crc_error The Rule of 72

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    Hi All,

    Just wondering what your thoughts are on FXI on its first day of trading?

    The shares were issued at $1.30, so they are already trading at a discount. Funny enough it wasn't until he sent all his clients a email (2.44pm) that two trades went through.

    To me this company seems to be loaded with fees. He is managing 20mil, and has 2 million in 'expenses'.

    One thing I don't understand is how he can use the services of all his other companies, ie broking etc. whilst controlling this company. Seems like a conflict of interest!

    You can run a publically listed company, and favor all your mates and own companies can you?

    Also whats funny is Peter Spann only owns 100 shares, and yet owns 300,000 company options... He isn't putting his money where his mouth is!!
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    There is in fact a prohibition in the Corporations Act on what are called "related party" transactions without member consent. I.e. where public companies which give financial benefits (broadly defined) to related parties of the public company. Exceptions to the prohibition include where arrangements are on arms-length terms.

    I would think Spann (and his advisers) are far too clever to trip up over something as basic as this. I've not seen the prospectus though and I make no comment on the specifics here.

    Cheers
    N.
     
  3. Redwing

    Redwing Well-Known Member

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    This is their Growth and Income Fund; should be interesting to see how it goes, I enjoy listening to Peter Spann and wouldn't be surprised if it does well, I'd say he would have many loyal followers in this one. Its come out around the same time as he promoting another McBank fund for income as well

    [​IMG]
     
  4. crc_error

    crc_error The Rule of 72

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  5. Simon

    Simon Well-Known Member

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    I don't know that speaking ability correlates to invest managerial flair!!

    But I agree that PS obviously knows more about money management than I do :eek:

    Growth and Income?? Do you choose either or does it plan to achieve both?
     
  6. redrover

    redrover Well-Known Member

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    Lets hope he can do a better job than the abysmal performance of one of his other publicly listed companies, Property Fox (#1), being canibalised by management fees and nil return to investors over 3 years.:mad: Beware of "gurus" - you would be surprised how much better you can do on your. own:)
     
  7. transit

    transit Well-Known Member

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    according to this they were listed at $1.25:

    Fox Invest debuts at premium - Breaking News - Business - Breaking News

     
  8. Redwing

    Redwing Well-Known Member

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    Re: Growth and Income..I reall Peter saying there's Growth, Income or Risk; pick two out of three.

    I'm not looking to get on board FXI, but will watch with interest
     
  9. crc_error

    crc_error The Rule of 72

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    Lets hope it also does better than all those MAcquarie Equinox and other magic once in a life time opportunities with 100% finance and capital protection recommendations!

    Peter isn't a guru, he was just in he right place at the right time with residential property and caught the upswing..
     
  10. crc_error

    crc_error The Rule of 72

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    its trading at 88 cents, down over 30%
     
  11. DaveA

    DaveA Well-Known Member

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    we something like this you do need to look at the volumn, as 1 trade could scew the results...

    ie one bloke may of just wanted to get out, sold his 10,000 shares at what ever money he could take, that being 88 cents....
     
  12. Simon

    Simon Well-Known Member

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    Anyone know the current NTA?
     
  13. Tropo

    Tropo Well-Known Member

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    "e one bloke may of just wanted to get out, sold his 10,000 shares at what ever money he could take, that being 88 cents...."


    10 000 shares may not had much impact on the price.
    Too many short sellers would do the damage (assuming that those shares can be legally short sold).
    :cool:
     
  14. DaveA

    DaveA Well-Known Member

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    if there is only 1 buyer at a lower price and one seller puts in an at market bid it will effect the price...

    i havent looked at all the volume this was only an example...
     
  15. Tropo

    Tropo Well-Known Member

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    Intraday chart may give you an answer.
    I only guess that FXI (only 12 trades today and very low volume) was sold from the start.;)
     
  16. DaveA

    DaveA Well-Known Member

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    it rose 30% again today up to 1.21 or so, first trade wasnt until about 1pm though...

    it just seems to be a very low volume trading share...
     
  17. Tropo

    Tropo Well-Known Member

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    First trade went through (500 shares only) around lunch time, because of big spread between ask and bid.
    So far this stock is a joke !!!!. Only 5 trades today and pathetic volume of 13500.
    Seems to me that this stock is manipulated...but good fun to watch :p
     
  18. crc_error

    crc_error The Rule of 72

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    lol, well its not very hard to manipulate!
     
  19. Chris.R_WA

    Chris.R_WA Well-Known Member

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    There is a thread running on Somersoft at the moment discussing this very topic.

    Congratulations Peter Spann - Somersoft Property Investment Forums

    In the thread Peter S himself responds several times to comments similar to the ones in this thread.
    It gives a different perspective to people from the outside looking in, and gives some of his reasons for listing...



    NB: I dont hold any FXI or even any Fox MF's ;)
     
  20. crc_error

    crc_error The Rule of 72

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    I think Peter should have simply listed a managed fund, with say 6 monthly redemptions. Listing it as a share simply allows for people selling at below value.