{"id":64258,"date":"2014-11-25T21:03:27","date_gmt":"2014-11-26T02:03:27","guid":{"rendered":"http:\/\/countingpips.com\/?p=64258"},"modified":"2014-11-25T21:03:27","modified_gmt":"2014-11-26T02:03:27","slug":"why-the-medibank-private-ltd-share-price-rose-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/11\/why-the-medibank-private-ltd-share-price-rose-today\/","title":{"rendered":"Why the Medibank Private Ltd Share Price Rose Today"},"content":{"rendered":"
November 25, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to Medibank Private Ltd\u2019s Share Price?<\/h2>\n

Shares in health insurer Medibank Private Ltd [ASX:MPL]<\/strong> enjoyed a strong debut on the Australian Securities Exchange (ASX) today, outperforming a weak Aussie stock market to close up 7% from its initial public offer (IPO) price at $2.14. Earlier in the session, Medibank Private traded as richly as $2.23. Today\u2019s strong trading session brought handy paper profits to the thousands of private investors across Australia who successfully applied for Medibank Private shares at $2.00 each.<\/p>\n

Why Did This Happen to MPL Shares?<\/h2>\n

Supply and demand drove today\u2019s price action, as it so often does on the first trading day following an IPO. The government structured and priced the sale of Medibank Private keenly enough to encourage strong interest among heavy-hitting fund managers. <\/p>\n

Many of those professional investors would have liked to get more (or any) stock in the IPO, but they missed out due to the government\u2019s allocation policies. Their only option to get their fill was to wade into the secondary market today and buy Medibank Private stock after it started trading.<\/p>\n

That buying pressure from big investors who missed out on an allocation \u2014 not to mention a large dose of FOMO, or \u2018fear of missing out\u2019<\/a>, among other market participants \u2014 drove Medibank Private\u2019s solid gain today.<\/p>\n

What Now for Medibank Private Ltd?<\/h2>\n

Investors who bought at $2.00 will be sitting pretty tonight. But I would caution against buying this stock after this initial wave of demand washes away. <\/p>

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Although Medibank Private\u2019s business model is solid, the stock is currently pricing in plenty of earnings growth. Lofty expectations can be hard to meet, and when a pricey stock misses them, the stock market can turn savage. <\/p>\n

I see stronger potential to reap big gains<\/a> elsewhere.<\/p>\n

Cheers, Tim Dohrmann<\/strong>+<\/strong><\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong>
\nJoin Money Morning on Google+ <\/span><\/a><\/strong><\/p>\n

The post Why the Medibank Private Ltd Share Price Rose Today<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to Medibank Private Ltd\u2019s Share Price? Shares in health insurer Medibank Private Ltd [ASX:MPL] enjoyed a strong debut on the Australian Securities Exchange (ASX) today, outperforming a weak Aussie stock market to close up 7% from its initial public offer (IPO) price at $2.14. Earlier in the session, Medibank Private traded […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-64258","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/64258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=64258"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/64258\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=64258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=64258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=64258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}