"...I've spent a bit of time recently taking a good look at retail investor/trader behaviour and thinking about how some company's play on sentiment. (Not to speak of traders who do the same). It's a bit of an ugly habit and sorting wheat from chaff can be tricky.
While it might be a while before we know for sure that there really is something behind the business, it is a good thing for a company to pull back from the endless push of information designed primarily to convince shareholders that things are ok. ..."
Yep, absolutely spot on.
It is called "HYPE"
I have 4 shares all which share almost exactly the same characteristics, and they ALL have risen on the "Hype", then when no real contracts or sales have eventuated, the SP has fallen to 52 wk lows.
They all rose on the Hype stoked by mgt forecasts and pronouncements.
As you say, for us small shareholders " it might be a while before we know for sure that there really is something behind the business" - we need to take care.
We need to determine if there actually is a product and business model which might become viable, then try and determine if the company has the mgt and capital to get the business to a point of cashflow b/even, and then profitability.
I am still comfortable that AJX has a good product, and now has mgt and board in place to give it a good shot - but now only time will tell.
As with 3 of the other similar companies I hold, I do not want to be "out" of the stock when they announce a decent contract.
AJX Price at posting:
12.5¢ Sentiment: None Disclosure: Held
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