Ann: Record FY21 Trading Update, page-8

It was pretty popular on the day trader’s forum, so I’m guessing your fears that the buyers are purely looking to flip for a quick profit will eventuate. Hence, the end of the day sell off we observed as it fell from intra day highs and closed at intra day lows (typical of a day traders stock). I’d say this indicates further declines for this stock, given the apparent lack of interest from long term fundamental investors compared to day traders who don’t care about fundamentals. This stock is clearly not anywhere near investment grade yet!

In this case, many will have used what some refer to as their T2, which is basically using the settlement period as a way to trade on margin. Traders can sell before settlement is due and not have to pay for the shares, thus giving them the ability to trade not with their own money. This requirement to sell the next day has been responsible for some very nasty sell offs.

The T2 traders would explain the intra day sell off as they were likely holding from the previous day and were required to sell. They may also have bought yesterday but sensing the sell off, may have sold. I’m guessing we will see further selling today m, especially towards the afternoon as T2 traders are forced to liquidate their positions.

While from that perspective I see a decline, from my own fundamental understanding of this stock I also see a decline as it is absolutely rubbish in every way possible, and the acquisitions are giving a false sense of genuine revenue growth which will soon be realised by the market, resulting in a major crash to single digits (in cents). Plenty more dilution to come (there’s already been like 50% dilution in the last year) as the company will seek to engage in further acquisitions to forget this sense of real fundamental potential. Not to mention all the debt that will begin to creep up on them as the money flow begins to slow