Muller Water Products Update Thursday, June 21, 2007
Posted by ei-forum in US Traded Stocks.trackback
With the current spread between the two classes of stock at approximately 1,40 USD, the MWA.B shares are currently trading at quite a substantial discount.
There is no logical reason for this difference. If anything, the B shares should be worth more due to the added voting rights.
Once again, Mr. Market is offering a good opportunity for the Enterprising Investor to profit from irrational pricing.
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My good friend, the spread reached $2.30 at one point yesterday.
Relying upon the rationality of Mr. Market can be risky business.
Thank you for your comment.
Yes, short-term it can be risk but in the long-term – in most cases – the market has a way of putting things right.
But we also have to remember – as Keynes states – that “markets can remain irrational longer than you can remain solvent”.
Time will tell….