It doesn't make sense of the takeover rumours reported in national press last week.

Simon

Well shares are up to 140 today. Wish I had made an investment. Up 40p

Edited by onlyme2 (Tue 19-Sep-06 17:56:34)

If the rumoured takeover does not materialise, then expect them to drop like a stone.

Michael

It's all selling today.

Maybe people are giving up on the takeover rumours?


Michael

Normally if everyone is selling then the price drops though ...

Perhaps it's the clever ones who are selling now before the price drops?

Michael

Looks like more than 500,000 shares sold today and only a few hundred bought. The share price is down - but only 4.5p which is well below what I would expect on that level of selling. But some of the biggest sales came very late in the day so the opening price on Monday is going to be a better reflection.

It's difficult to see anything of substance which could have forced the shares up by 50p... and if the takeover rumour isn't confirmed soon then the share price will probably fall to its former level - or lower as has historically been the case with previous hypings of PlusNet stock.

Simon

Can I just clarify (to any would be share speculators)?

If the price rises (people buy), then it's a takeover.

If the price drops (people sell), there are dark times ahead.


No other possible reasons?

I suspect that the latest falls are people covering their positions having realised that the Q3 results will be out in just over 4 weeks time.

If those results show a further reduction in net additions, then this will be a negative signal, given the growth in the overall market.

If those results show a reduction in absolute numbers of customers, from the previous quarter then this would be a dreadful performance. Plus Net shares will head south of the original issue price, in my opinion.

Let's face it... quarter on quarter rate of growth has fallen to negligible levels, so the prospect of an absolute quarter on quarter decline is hardly an unrealistic prospect given current levels of customer dissatisfaction, the lack of new referrals and even plus net sending out panicked emails about how they have "let you down."

In reply to:

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Looks like more than 500,000 shares sold today and only a few hundred bought.

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So nobody bought the ones which were sold and nobody sold the ones which were bought?