Classic trader activity activity driving the SP atm, imho.
Traders love promising tech stock that is taking a while to get to its s..t together, has had a few too many cap raises, but is has a fundamentally good story and getting close to commercialisation. Everyone interested in the stock has over committed already and a little wash trading can drive the price down disproportionate to the company's risk profile. They drive the price, so they know when best to top up and when to offload.
There are opportunities if you can second guess their thinking at the bottom. Easier said than done mind you. Easy too though, to fall in love with the story. Then when the announcement comes - it is the appointment of administrators out of the blue, not the deal we were all waiting for.
The lesson I have learned from suffering a couple of those recently, is to watch out for any difference between the company hype and directors' own investment in cap raises - including direct and indirect (but not options).
On the Commsec directors interest screen, you can see the directors interests as at the date of the last notice given by each director and also as at the last company disclosure. There is a handy little function where you can toggle back to the previous company disclosure. So, if you compare what the directors hold now compared to what they held a year or so earlier and there has been a cap raise in the meantime, you can see what the directors have taken up in the raise.
I've masked my sentiment for this post. Go on, if you are interested - have a look. See what the directors think about the prospects of this company.
HZR Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
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