hello @bridog. Hope you are keeping well.
Yes, FLC is becoming a tough hold if you focus on the share price.
Some tens of years ago, I sat down with a paid stock manipulator and something he said remained with me. (He was willing to divulge his trade because he was retiring). He said, we (referring to themselves) can “draw” a chart to condition market participants to sell or buy. ‘We’ don’t do it alone because they do it in a pack. He asked me to read the book “Liars Poker”.
To accumulate a stock, they whack it down and trigger cut-losers, much like shaking a tree to shake almond nuts off the branches and culling low conviction players. To distribute a stock after they have cornered it (when they want to sell), they run the stock to entice stock-chasers, momentum players. The higher the stock goes, the more chasers will come in, like bees attracted to honey. This is what I suspect happened to Phoslock.
I cannot tell for certain what is happening to FLC now. One only knows after the fact eg Phoslock. I can only make an educated guess that someone is trying to dislodge low conviction holders, so that when the time FLC becomes EBITDA positive, it confirms the bias of high conviction holders to the point that they would hold back their selling. This way, supply is locked up and demand will drive prices higher.
If (again, I say if) that happens, then you will get that succession of higher highs and higher lows. Right now, we remain in a range.
Like I have posted before, I see the current volatility carrying on to 1Q next year when they have to show +ve EBITDA. This is just my humble view. Please do your own research. I will hate it if someone loses money on account of my comments.
Maybe the market is reacting to the article below:
https://finance.yahoo.com/news/worry-fluence-corporation-limiteds-asx-231745142.html
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