Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

iShares Core US Aggregate Bond ETF V.AGG


Primary Symbol: AGG

The iShares Core U.S. Aggregate Bond ETF seeks to track the investment results of an index composed of the total U.S. investment-grade bond market. The index measures the performance of the total U.S. investment-grade bond market. The fund generally invests at least 90% of its net assets in component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities of its underlying index.


ARCA:AGG - Post by User

Comment by Spence4on May 18, 2020 3:20pm
337 Views
Post# 31042970

RE:QUESTION for our more experienced AGG Shareholders.

RE:QUESTION for our more experienced AGG Shareholders.Some good points made by JDN as to the history of AGG. This gem has taken some time to develop, be properly articulated and get one's head around. Coup, jihadists, nugget effect, lower grade vs. exceptionally low cost. POG in cellar for last 5 years. The Forbes effect. The list goes on.....but we are here, today, in the here and now, which is the main things. To me, we start with first principles: the share price of a stock goes up when the "bids" (buyers) outweigh the "asks" (sellers). Conversely, the share price goes down when the "asks" (sellers) outweigh the bids (buyers). Supply and demand. Easy enough. AGG's share price has remained range bound of late, in the range of 30 cents, despite multiple positive (substantive not fluff)) press releases and the marketing campaigns being initiated (webcasts, articles etc. spreading the story). This has led to large volumes of bidders/buyers lining up (Bloomberg reports that AGG's share volume has averaged over 1MM share per day over the last 30 days), yet the share price remains somewhat range bound (though some might argue based on their perspective (ie entry point) that going from 20 cents to 30 cents on big volume isn't bad - an argument to which I don't subscribe). So what is happening ? Of AGG's 100MM shares issued and outstanding (ie the real float), my view is that at least half are in the hands of shareholders who will not sell/"ask" until the share trading price properly reflects its intrinsic value, which is higher by many multiples than 30 cents per share. So those 50MM shares are not selling/"asking" any time soon and are thus to be treated as parked away. Another 25MM of the 100MM true float are currently subject to a legal hold period from the last 2 financings, so they cannot legally sell/"ask" at this time and are similarly to be treated as parked away. That leaves, in my view, a true "float" of around 25MM shares in the hands of those who will trade in and out, be tipped over to sell outright based on their particular financial circumstances etc. Yet Bloomberg tells us that the 30 day average trading volume is over 1MM shares per day on average, which equals over 30MM shares over the last month. So the true float should be continually shrinking, yet we keep experiencing sellers /"askers" consistently hitting the "bid" at around 30 cents even in the face of continued positive news. Seems very strange and many are watching carefully. Shares are range bound at this time due to sellers consistently hitting the bid. Could be the trading in and out factor (buying at 28 cents and selling at 33 is close to a 20% return, which is excellent if achieved over a few days). Regardless, probably at the end of the day, net result is a "tightening up" of the true float and more shares coming into stronger hands - which can only be good for us longs. Time will tell.
<< Previous
Bullboard Posts
Next >>