This post is not meant to ruffle any feathers. I am writing it exactly the way I am feeling it.
A2M price went up 10% after I closed out my A2M trade on 23rd Nov. Yesterday it dropped 10% in a day after the BAL announcement. I feel the pain for the BAL as well as A2M shareholders.
Businesses relying on China for growth and profitability have suffered huge setbacks over the past few years due to changes in demand as well as regulatory changes. For example our mining companies.
Let us be real. A2M growth will slow down at some point in time in the future. You don't want to be holding A2M shares when that announcement comes out. It will be ugly. The later it happens the more ugly it will get.
Vocus and BAL are two examples from just last week. It happens all the time when a company / sector trading on a high PE makes an announcement that is slightly not slightly positive.
Changes to the market impacts all the companies in the sector. It might be iron ore, coal, dotcom, telecom or milk. It applies to all.
Be careful.
A2M Price at posting:
$2.21 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)