A2M share price hit an all time high of $2.48 on Dec 1st. Since then share price has dropped 20% from its all time high. This significant price drop is driven by two main reasons. First reason was the BAL announcement on Dec 2nd and second reason being profit taking by holders.
Interestingly there have been quite a few section 279 filing by substantial shareholders since Dec 2nd. Some increased their shareholding and some decreased it.
A2M made an announcement last week on Dec 21st and confirmed their guidance and tried to distance themselves from the issues at BAL. the share price jumped up to $2.14 on that day but came down to below $2 subsequently in the next few trading sessions.
This indicates that the buying support is driven by news / announcements but selling is happening slowly and in organised manner. In my opinion the share price is being artificially held down. The first half results are going to be better than 2016 and there will be a share price rally as we draw closer to the results announcement date.
This is a wonderful opportunity to get into A2M below $2 with a stop loss at $1.82 in case of further impact from BAL announcement. There is high probability that $2.48 high will be tested very quickly in Jan/Feb if BAL announcement is positive and in the lead up to first half result announcement.
A2M Price at posting:
$1.98 Sentiment: Buy Disclosure: Not Held
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