Sure what you are seeing is a classic bear trap often when a stock has broken down as badly as a2 has you will see small bounces off support
I say small because its not volume buying only 5.7 mil traded in a stocks that was trading up to 8-9 times this volume this year
So that tells me its not insto buying its more over eager mum n dad investors or a few retail shorts covering
If his was all the short sales covering of late it would be 20 million volume at least so i would not get too excited gaps get filled an that one at 1.26 wont go away nor will the 1.06 gap
EPS growth is very solid for a2m ultimately that drives earnings however i dont see these big upgrades the punters in this stock are looking for if they were coming in the fy you would of heard about it by now so logic tells me guidance may be met an with no big upgrade or massive uogrades to outlook this will be hammered down again
Bounces of support with conviction of big buying do a lot more than this volume all your is seeing the hedgies letting fresh money back in to go at the short side again we call it a witchita two step in the business works every time every time if you guys as retail investors think you can compete forget it y0u cant
Lot of claims here just well the US business is going funny that you all know its there second crack at the US dont you where are the numbers to say they are making money in the US not stores dollar numbers please no one knows that the investment was 20 mill over three years whats the return at so far im skeptical until i see the FY just how good the US is going knowing the dairy industry there as I do
I can tell you right now hedgies with the $$$$ will be kicking back today chortling you think they have all just gone away look at the vols thats not short covering 100-200k trades are not big funds buying
A2m is a hell of a lot better value at 1,40 Than it was at 2,36 but the fact remains the market cap does not justify the current SP it is my belief the FY will sort the wheat from the chaff
Dead cat bounces are common false breaks are common an looking at the weak volumes id say its one of the two
Seriously
A2M Price at posting:
$1.41 Sentiment: Sell Disclosure: Not Held
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