A $3.5m Gift From Foolish Retail Punters

A nice little gift turned up at the Intelligent Investor Funds office this week. We were given 366,160 Vision Eye Institute (VEI) shares for $0.34 each. Given the current market price is $0.58, the instantaneous profit on these shares represents $87,878 straight to the bottom line. While I should be happy and probably keep mum, I’m not. The money we made – and the $3.4m made by other institutional investors – is a direct transfer from retail punters. Their behaviour exasperates me. Vision undertook a 2 for 3 rights issue in December. In addition to a $4.5m placement, each...

A nice little gift turned up at the Intelligent Investor Funds office this week. We were given 366,160 Vision Eye Institute (VEI) shares for $0.34 each. Given the current market price is $0.58, the instantaneous profit on these shares represents $87,878 straight to the bottom line.

While I should be happy and probably keep mum, I’m not. The money we made – and the $3.4m made by other institutional investors – is a direct transfer from retail punters. Their behaviour exasperates me.

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