WR1 General Discussion, page-30381

Why is WR1 playing with short-term weakness?


From a weekly perspective, not a big drop, from 123.5 to 112, its less than 10%. But its evident that there seems to be a short-term weakness. There have been lot of posts trying to address this, but I am not sure we still know why. Reason being, its not easy to pin-point small plays to any particular event or pattern. Sometimes it is , but many times its not. I know from a play happening in 130s and 140s, many had eye towards 200, so may look very disappointing and perplexing to most. Very understandable. We all are in that situation when we don't know what's happening - we have some thinking, and what's happening on the ground does not reflect what's happening on the ground. Someone asked today, WR1 has done so well, comparatively to other ASX Li stocks, so why the gloom? One reason. Expectation. In life and elsewhere, our satisfaction is driven thru our expectation. And our happiness is determined by how satisfied we are. Simple example. We go for an exam. I was expecting 90. I got 80. I will be disappointed. Very disappointed. Other scenario. I was expecting 70. I got 80. I am ecstatic. Nothing could be better. I throw a party around. In both cases I got 80. I expectation determined whether I am in party mood or in depressed holding in a corner of my room. I feel that is a big thing which is playing here. I am no expert, but that is my humble reading.
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So what do we feel may happen from here? There is a good path and slightly longer path - I wouldn't say a bad path. The good path is that we quickly get to 130s/ 140s etc. General markets are all. Li macros is behaving. And we get a bonus of some good news. And we push towards 170 - that is the number I am expecting to play on the upside, next number. The longer path - General markets weak, Li macro weak, June weak, and on top of that, may be a CR in next 4 to 6 weeks. It doesn't make the stock bad, it just means, many may have to wait longer to see the gains they were anticipating. I still feel strongly positive about WR1, have been for 3 years, and inspite of the reception I have been getting recently, I am ignoring that as noise.
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But we still didn't address - why are we dropping, playing with weakness? We will never know. One thing is that WR1 has a very good rise. Those who have played from Feb lows made some good coins. They would be happy to cash in. Secondly, overall sector is weak. It doesn't help. Thirdly, many feel there may not be a very strong announcement for next few months, so we may be at mercy of Li macro. And if that is not looking good, we also may feel it. And lastly, chance of a CR. Last time a CR was done, we had higher cash balance that we may have now. It doesn't mean CR is must, as money is still there for next few quarters, but sometimes many look at pattern/behaviour of how company operates - and it looks like WR1 likes to have both pockets full.

Personally, as I had wrote last week, I had got out. I am still looking for an entry. For me its important that trend is good. I am not interested in bottom fishing. If you read thru my posts, I had written a few times around number 112. In one of my trades I had written this number. Also, I had written recently, that if WR1 was to fall, 118 and then 112 will come into play. It finished Friday on 112. I am not surprised - its a critical number.

Lets hope we get a good one next week. Anyone interest in my other thought, look at my other posts. All the best.