I just read something interesting on www.aireview.com.au. I copy and paste here:
Fallen Angels Update: Nylex And Evans & Tate June 05 2006 - Australasian Investment Review ¡V (AIR)
Yes, there is life for a couple of so-called fallen angels, after a big price drop on the ASX, sort of. Take two recent Air favourites: Nylex and Evans and Tate Wines.
Last week saw lows and then sudden rises on sharply higher volumes.
Nylex rose to finish at 5.4c on Friday on 6.14 million shares. On May 17 it was at 9.5c and the Friday before it had finished at 4.6c.
The reason? Well it's hard to say. Belief in a new world, the right whisper around the market, faith in the garden hose, surging car sales somewhere, or the realisation that Kerry Stokes can't really allow Nylex to collapse, even though he only has around 14 per cent or so.
The collapse of Nylex would be a mortal blow to the authority and standing of billionaire Stokes: so I reckon the harder heads hunting for value among the fallen angels have concluded that Nylex has a Big Brother who will do a lot to make sure there's no eviction.
NLX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
