My views on the share price

Hi parcel

My views on the share price and price action as follows:

From April through to basically the end of September we traded in a range of 4.5c to 6c.

During this time there was no need for anyone to be aggressive in trying to pick up stock. We were far away from any $$/deals landing which is what will ultimately drive the re-rating of the valuation of SUDA.
People were getting impatient/saw better opportunities and sold out. This allowed people to purchase stock. Let’s call this group of people “the accumulators”.
There was no need to be aggressive so they sat at or just below the last traded price and mopped up what the sellers had to offload.

During this time the company made announcements about the progress it made towards its business development goals.

So what has changed? Was there a so called “tipping point”?

Well for me it was the broker roadshow. It was the sign to the market that things were still on track.

So we reached the end of September with only 3 months left in the year and a market cap of just over $50m.

This then meant that the accumulators in order to get stock could no longer sit in the buy queue and wait for someone to sell them stock. They had to step and buy it from the sellers. That is what we have seen this week.

I thought yesterday afternoons action and this morning’s action was encouraging.

Yesterday afternoon basically the last 2 hours every trade was a bot trade selling into the bid. There were no other sellers around. Even in the match we were about 40 seconds from closing at 6.7c but a sell came in to ensure we closed at 6.5c.

We come in this morning and for the first 2 hours volume has completely dropped off and the buy depth not increased. This was designed IMO by the accumulators to see how much other selling interest there was. And the result? We had small volumes and not a lot of new sellers come onto the screen.

That 1.1m was interesting when I saw it appear. It was going to be one of two things. It was either a roadblock by the accumulators to try and pick up stock under 6.7c by spooked sellers, or it was a legitimate sell order and therefore it would be a good test to see how strong this buy support is by the accumulators.

As we can see, someone bought the 1.1m.

Think about it, if we closed at 6.7c yesterday we would have likely opened higher and headed towards 7c. So here we are around 2:30pm and 2m has been bought at 6.5-6.7c by the accumulators.

I think we will see many techniques between now and the first deal to try and create fear in the minds of people looking to sell, as the accumulators will be desperate to pick up stock.

What the action late yesterday and this morning has told me is that there isn’t a lot of stock coming on market, hence the price may continue to rise.

All IMO only and only on persons view and I could very well be likely wrong.

Good luck all