sensible discussion mon morning, page-34

Todays trading following the demand charts, showed demand rose quickly this morning starting above 1 and went up to 3 in first hour, I guess on the hope really good news was coming out and people wanted to make sure they were in before a run if it happened. Around 11:20 the demand dropped back down to 1 which means equal amount of shares to be bought and sold in the top 5 price levels and started to increase a bit just before 12 when the announcement came out before the demand dropped to below 0.5 but the buyers also dropped too so the blue line was always above the red line except for the 25 minutes after the announcement came out.

At around 2pm for some reason demand started to increase over the next 1-2 hours demand went from 0.5 so half as many shares wanting to be bought compared to amount being sold and went up to 3 times more amount of shares wanting to be bought then sold. It reached a higher point on the demand side in the afternoon then it did at the high point in the morning before announcement. Since the blue line was always above the red line except for the 25 minutes once announcement came out that meant the shares being bought were anywhere from 1.5 to 3 times more shares wanting to be bought then sold per buyer/seller in the top 5 price levels.

The top 8 price levels the demand never went above 2 and mostly stayed around 1-1.5, which means there were lots more shares in the first 5 price levels on the buy side to the sell side which got the demand to a ratio of 3 at different times during the day.

That’s now 3 days in a row where buying has been consistently stronger then the sellers and the last 2 days the average price each day was 43.5 cents. This didn’t happen during the time when share price was in the mid 30’s, but the buyers are happy to pay above 40 cents now to make sure they get the amounts of shares they want.

Even though the price did fall today after the announcement, following today’s chart says buyers were wanting more shares then sellers wanting to sell so it has to be encouraging for holders. I think it is anyway.

The chart today doesn’t look as good as the one yesterday with the blue line lot higher then the red line yesterday but as long as the blue line is above the red line it means there are smaller amount of buyers that are buying the shares so each buyer wants bigger parcels of shares compared to when the red line is above the blue line. I don’t know if there would be enough people willing to spend so much money on a company without doing their research to keep the demand on the buy side higher then the shares on sell side for 3 days in a row, so looking at the chart for me suggests there are a lot of people that think this well will be very profitable.

Just my views though.