RE:RE:RE:BBD.A vs BBD.BFurther to my last post on why A share holders are willing to pay 25 to 30% more for A shares than B shares, the closing prices yesterday is a perfect examples. A shares closed at $1.22 while B shares closed at 96 cents. If my maths are right, A shares closed 27% higher than B shares.
Interesting that 132,000 A shares went up by 6 cents while 3.5 millions B shares, i.e. 25 times more went down by 2 cents. However, in most cases both A & B shares are in synch and they both go up or down together at closing time.
I got a few comments on my post but none were good enough to convice that I am making a mistake not buying A shares at a premium of 25 to 30% over B shares. However, I received a rather interesting comment that once the price goes up the difference between the price of A shares and B shares will go back to what it used to be i.e. 10 to 15 cents in the $4 to $5 range. in that case, A shares would be only about 3% higher than B shares. If this is true, why pay 25 to 30% more right now if it is going to to down to a 3% difference in the future.
I would love to hear from A share holders who recently bought A shares and explain to us why their level of confidence regarding A share is such that they are willing to pay 25 to 30% more than B shares considering all the disadvantages of buyng and selling A shares.