How a stock can go up when there are too many contra kaki? Then again, how come so many contra kaki if the expected result is good? Then again, how come the expected results is good when the big boss isn't sincere? In the end, the question will pose back to the boss.
Does it sound logic when the targeted price is around 40c when the current price is merely 15c, yet nobody sapu the shares?. That's what I mean the sincerity of the boss is very important. Even though the company may be profitable, a boss can hide the profit & show it only at the last quarter, leaving many investors in despair. Or in a worse scenario, the company is still in the red after the so called "new & innovative product suites" is launched. A rosy & bright picture is then needed to be projected now for the dudes in the market to buy the shares, but end up carrying loss making shares.
Will M3 drop to 13c or even touch 12c? I think the chance seems higher now. If the buying force doesn't turn stronger but merely just support at buyer's bid, sooner some short term investors will become sellers & start selling off the shares. Q result will come out by Feb end. Judging by the past announcement dates, M3 always will announce Q result almost on the last few days only. That's is another month from today. If the play on M3 is based on expected good Q result, then I would not surprise if share price is further press down before a good bounce up. There are simply too many short term players in the ding dong game.
If M3 doesn't report a profitable Q as expected. I can expect mad & crazy sellings down to 10c. If M3 reports a turnaround result, it may be 17c. Then what's the bright side? Since someone in this group is targetting at least 25c, I think would be much safer to buy after the Q result.
It will be good to jump out of the current thinking cycle. On many occasions, because we have shares in a company, we tend to see only the "imaginary positive developments" of that company. For example, the volume is building up, so the price will go up. Rarey, players will think of the potential "unexpected negative developments".
Like I have said before, coming Q result will tell you whehter it's OK to buy. Having said that, the boss can book the profits only at the last Q only. So we are dealing with 1. company's performance 2. the sincerity of the boss. The is the normal scenario when we come to penny stocks.
M3W is at fat premium over mother share. The sellings are very strong it's a good sign but still too early to wade into it. The big players must buy a lot a lot, then only there is hope for a recovery.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
edmin89
62 posts
Posted by edmin89 > 2018-01-23 00:03 | Report Abuse
tomorrow show time