Ann: Change in substantial holding, page-13

Great article, thanks for sharing. Explains in a interesting way the roll-up strategy and much of it is relevant to shine and slater and gordons stories. I particularly like this paragraph:

"When competition among roll-ups creates too much liquidity then investors will start to cut the liquidity premium that they attach to Bob's shares. Bob's acquisition targets will no longer be willing to forfeit as large a piece of their earnings to Bob as they once did in order to enjoy the liquidity of which he was once the only provider. As a result, acquisitions provide ever small returns, the immediate increase in per share earnings and the good old jump in the share price that Bob once enjoyed is increasingly a thing of this past . At some point, it makes no sense for Bob to continue his roll-up strategy. His business will have lost its banking function and now operates like any other fishing store chain—it grows in line with population growth and the market's desire for fishing products."

This is exactly the opposite of what should be the case when shine looks for acquisitions in a fragmented market without sgh. It's also why the low share price and not a lot of cash available (for a conservative POV) to make acquisitions is such a pity; now is the ideal time to be a buyer in the market. The stock needs to be marketed more for this to happen, at least to a point where it is seen as fair value.

Somebody should foward the article on to Simon and the CFO   and tell them to at least get some directors buying some shares at these prices..