Well, that was unexpected and also not good.
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I had written that I will see the price action and buy based on few factors. After the open today, from that moment itself it looked like it was not going above, so from just the price action perspective it was looking like going down the whole day. So I never got an opportunity. At this stage I have not picked up any shares.
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Couple of weeks back I had posted that I had got out for third time and had given the reasons. At that time I had got out at 5.5 and oppies at 2 - which I had written. When the announcement came on Friday, I had written I wish the results had come earlier while I was holding. But it looks like I can still pick up my stocks at cheaper price - surprising but true.
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So why did we have such a bad price action? No one knows for real and we can all make our own guesses. It is no doubt that MLS has not done for a long time. Its sister companies managed by the same BOD are also miserable - SBR and GED. So many who were disillusioned like me probably exited. Secondly, usually volume is not very high, so big holders who may be looking to get out may have used this opportunity. Thirdly, there is a chance day-traders bought in morning. The price never crossed the open. So those day traders not wanting to hold must have exited on losses creating further pressure on price. Fourthly, as someone has mentioned, markets are in such miserable state that they are not ready to give a lot of due just for potential.
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Don't know what will happen from here. I was looking to buy, but only for a trade, especially considering the BOD. There is a chance that today might be recognised as an unnecessary sell and it recovers from tomorrow onwards. Also not sure when the next announcement will come. The graphite was sent for testing I think in last Jan/Feb - it has taken 1 year to get the results. In the Webinar we were told results will be available in August. We got it after 6 months without any update. So when the next announcement will come around progress of this, difficult to say.
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But for holders, at least there are some positives. Graphite is there with high purity. MLS is trading near its lows. So if something good happens, there could be a lot of upside. But it may require a lot of patience considering how the company operates. A change in management, a new mining CEO etc may help, but it may spoil the cruise control the BOD is in - but can happen. I really wish that something good happens here and will be watching the space. All the best.
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