big fall in price , page-18

re: big fall in price - to b2 B2 - I posted in regard to your comments on stocks that only trade low volumes. I agree that if you need the cash in a hurry then at times it can be hard to exit without higher than average slippage costs. I also would say that the retracements especially in the early turnaround part of the trends can test the resolve and stop losses. However I wanted to make the point that some of the best performing ASX stocks trade small volumes each day and gave you just some examples in the post - I have cut and paste it again below. Look at the charts and see if I am right.

I noted that Salty is getting upset on this thread accusing me of not replying - I had a busy weekend and am pretty relaxed about my portfolio. If Salty has to nervously be here 24 hours for some 'mothering' from other posters on his NEOO gamble then that is his life I guess.

I read you post just then and this is my reply.
If you want specific information on a stock then feel free to ask - for example have you ever wondered why GUD has gone up so much in price? What about a stock like WAT - these never get discussed around here - but they are going up for a reason, it isn't random.

Here is the text from my post on NZO (note pe a little stretched but maybe justified by the peg?)...all the best.

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"This one has fundamentals going for it. It has been the best growth story in its sector in financial measures over the past 2 reporting periods - do some research.

Nothing wrong with low volume stocks when the financials and outlook is top in their sector. Authors of TA books that are too lazy to do fundamental research talk about low liquidity stocks as a no no. They talk out of their backsides.

Examples? Look at charts of these AS JUST A FEW and their sectors and then look at and consider their 'pathetic' daily volumes and then think about it - I urge everyone to do it and then ask yourself "why did they go up that much"? I know why and it isn't rocket science !!! If you want to know then ask and I will tell you.

A lot of (if not most !!!) the best performers in terms of financials/fundamentals and price appreciation in every sector have low volumes.

WAT - Consumer Durables and Apparel / Leisure products

GAP - Consumer Durables and Apparel / Textiles

GUD - Consumer Durables and Apparel / Household Appliances

SAQ - Hotels Restaurants & Leisure / Leisure Facilities

FAN - Retailing / Specialty Stores

ABB - Food Distributors

SHV - Agricultural Products

NZO - Oil Exploration & Production

TRG - Asset Management & Custody Banks

HHL - Asset Management & Custody Banks

EZL - Investment Banking and brokerage

DUI - Multi Sector Holdings

COU - Specialised Finance

PRY - Health Care Services

KOV - Building Products

HNG - Industrial Conglomerates

COS - Trading Companies & Distributors

CCP - Diversified Commercial Services

CRU/CND - Employment Services

NBL - Retail

and many many more... these are JUST A FEW in some sectors.