Chart Update, page-18252

yes you are correct its best to buy on strength, in fact best of all its best to buy on dips on a stock that is still in an overall uptrend and with financial analysis supporting the share price.

For A2M:

a) Financial analysis: in my opinion the future range value is so wide because of the uncertainty. A2M could recover very well into 2024, earnings could recover their 2019 peak and grow from there. If this situation happens, then at current share prices we are looking at a future PE of around 16 with future growth. ie the numbers stack. Alternatively A2M earnings could recover less (say grow from their base 33c FY21 earnings (or less? depending on Q4) to say 40c. At this the future PE is around 20: could be acceptable to the market. At at the bear base scenario: EPS stagnate at around 35c, PE of 22: market would continue to 'mark down the share price over time', since a PE of 22 with stagnating earnings is not very attractive.

In basic English: those posters arguing for a $6 share price could be correct, and those arguing for higher share prices could also be correct: its the future uncertainty of earnings that is playing out like a 'fog of war'.

b) Technical analysis: obviously very week. However the greatest profit can be made if one can hit the inflection point (ie the bottom). By the time a new trend becomes evident, then obviously the best profit has been forgone, because one didn't buy at the bottom.

So (a) and (b) are playing through my mind, and at the same time I am not seeing many buying opportunities in the market as a whole for other shares (unlike last year when I was posting on multiple stock threads and posting why I think the share represents value).

Because the confidence in my viewpoint on A2M is low: I am taking a 50/50 each way bet, try to buy in as the share price stops dropping, but keeping my position small until I have more confidence. Also running with tight stop losses because as you have highlighted: one should only be entering on strength, and one day does not make a trend'.

Hope this helps.