Update on Port of Tauranga share price
Port of Tauranga Shares Up Over 20% After share Split
On 22 September 2016 we explained about the five for one Port of Tauranga Share Split, at that time Port of Tauranga shares (NZX code POT) had traded at close to $20.00, but they were trading at $19.25 immediately before the split. On 21 October 2016 we updated readers on Port of Tauranga after the Share Split. They were then trading at $3.73. down on their theoretical post split price of $3.85.
Last night - 21 February 2017 Port of Tauranga Shares (NZX code POT) were trading at $4.48. That is equivalent to a pre split price of $22.40, an increase of 16.36% in a little over three months. You would have a return of over 20% if you were clever (or lucky) enough to have bought them the day after the split at $3.73.
It appears the Directors' decision to split the shares was a very good one.
But what else, if anything, has happened to make the shares worth more? Are they just trading at a higher price because of the "perception" that they are cheaper? It certainly appears so.
The next dividend, expected to be about 25c is due to be paid on 10 March 2017.
At $4.48 Port of Tauranga shares are certainly not cheap. We do not expect the share price to continue to increase at the rate they have.
They might even be due for a "correction". However we still like the long term propects for Port of Tauranga. If you were to sell what would you do with the proceeds? If you'd like to discuss please call Jonathan York on 07 578 3863.
- Last updated on .