All Out, All Change at RHG

By Steve Johnson · 11 May 2011

By Steve Johnson ·
11 May 2011

Wow, these are serious volumes being traded in RHG. Almost 142 million shares have changed hands since the company announced a fully franked $0.79 dividend on 28 April.

The efficient market is hard at work transferring the RHG's shares from those on high tax rates who prefer discounted capital gains (such as myself and John Kinghorn) to those who value the franking credits (mostly super funds in pension mode). By the time the ex-date arrives on Friday, half the register will have changed.

I doubt the tax office feels the same, but from my angle it's impressive stuff.

It will be interesting to see where the stock starts trading on Friday - and even more interesting to see whether John Kinghorn buys back in.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

All Out, All Change at RHG

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All Out, All Change at RHG

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