Thursday 27 February, 2020

VMIL stock hits new high

(From left to right) VM Group Chairman Michael McMorris, VM Group CEO Courtney Campbell, and VM Group’s Chief Investment Officer Devon Barrett during a briefing in 2017 to announce details of the company's IPO.

(From left to right) VM Group Chairman Michael McMorris, VM Group CEO Courtney Campbell, and VM Group’s Chief Investment Officer Devon Barrett during a briefing in 2017 to announce details of the company's IPO.

Investors are trading up Victoria Mutual Investments Limited (VMIL) stock price with it hitting new highs of $12.50 or fivefold higher than its listing price two years ago.

The stock gained 4.5 per cent on Wednesday, but 30 per cent since New Year’s Day. Investors on Thursday are continuing to trade up the stock.

VMIL opened trading on Thursday at $11.50 or one cent higher than the closing price of $11.49 yesterday.

Some 520,000 units traded on Wednesday indicating that there is some strong trading by large retail investors and institutions.

The company continues to book new business but nothing has fundamentally changed as earnings are yet to be released. So investors are using technical indicators to support the valuation.

Earlier this week, VM Wealth - the retail arm of VMIL - announced that it structured a $900 million corporate note for private company, Stewart’s Hardware.

The note would go towards refinancing high-cost debt, providing working capital for the hardware titan. The impact on VMIL won’t be known until the release of financials.

VMIL listed in December 2017 at $2.45. The offer surpassed its intended target of raising $700 million in its IPO but more than $2 billion chased the offer.

VMIL is a wholly-owned subsidiary of the Victoria Mutual Building Society.

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