Hi Joeyy63
Not being a trader, I have never expended time to understand the significance of volumes. Other things being equal, volumes transacted tell me that many folk want in, but the obverse of the coin is that about as many folk want out. In fact, if one presumes that holders exiting know more about the stock than newbies entering, one could even worry a bit. I am happy to be elucidated on this. Lucifer, bring out your light!
If one looks at the offers to buy and sell NWH, at a superficial level the volumes are about equal as I write. However, near to the last closing price, there are more sellers - one of whom wants to sell 183,822 shares at Friday's $1.265 closing price. There are not many buyers within 3 or 4 cents of that price. This suggests a Monday morning retreat. I am a long-term holder of 100,000 shares, so these wobbles do not concern me - I'll comfort myself with the dividend while I wait.
I get a feeling from reading the financial press that there is going to be a fair amount of civil work in the hinterland whence NWH gets business, and NWH has not spruiked this up. This business, civil works, is twice as profitable as mining services, and NWH is into it on a larger scale than it is into mining services. I think management has taken the conservative path of preferring to under promise, and over deliver. Time will tell.
Further on conservatism, NWH has taken much of the cost (redundancy payments) of reducing staff in 2012/2013, which will take the heat off 2013/14. Further, delays and the like in 2012/2013 resulted in idle equipment and employees waiting for deals to come to fruition - this wasted expense will be smaller in 2013/14.
We investors and the media (including in-house financial reports) tend to compare results year-on-year, and this exaggerates business retreats after a bonanza year like 2011/2012. We should lop the top of the histogram column representing 2011/2012 to get a better picture of things, rather than using the 2-point trend line of 2011/2012 and 2012/2013. I bought into NWH as a contrarian gamble, on the basis that its long-term lack of health had been exaggerated, and I still hold that view.
With an investment of some $134,400 in NWH, I am neither a buyer nor seller, and the dividend will allow me to sit things out until reality presents me with a different set of performance metrics. I expect to hold for a few years.
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Last
$3.52 |
Change
-0.035(0.99%) |
Mkt cap ! $1.592B |
Open | High | Low | Value | Volume |
$3.54 | $3.54 | $3.49 | $978.7K | 278.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
32 | 36256 | $3.51 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$3.52 | 8853 | 29 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
31 | 36211 | 3.510 |
21 | 41418 | 3.500 |
17 | 45862 | 3.490 |
15 | 129965 | 3.480 |
6 | 12058 | 3.470 |
Price($) | Vol. | No. |
---|---|---|
3.520 | 8719 | 28 |
3.530 | 17031 | 23 |
3.540 | 22441 | 16 |
3.550 | 81939 | 15 |
3.560 | 112339 | 9 |
Last trade - 13.00pm 29/08/2024 (20 minute delay) ? |
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NWH (ASX) Chart |