That’s where the Class of 2005’s good news ends. Two of the others, Oasis Property Fund and Amalgamated Electronics, trade above their pre-listing price – although neither beat the interest paid by a savings account. The nine other debutants of 2005 all lost their supporters money. Three of them have been liquidated so the shares are now worthless; two others trade at less than a tenth of their pre-listing price; the balance have fallen in value between 70% and 85%. Clearly, investors would have been best advised to ignore the entire JSE New Listing Class of 2005.
UPDATE: Note from an independent property investment specialist puts Oasis’s performance into perspective: “Don’t forget Oasis Property Fund would have carried a yield of (I guess) in excess of 10% pa through the period. As with all REITs – like property, the yield has made up over half the total return for the last 35 odd years. So its given a rather attractive real return over this period.” Good point. So Oasis means two of the 11 did well. Still not great odds.
The JSE’s Class of 2005: Click on the Listing Date to read the pre-listing statement.
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