Look, I follow a lot of these small tech's with great ideas (or natural resource reserves) that will pay off (maybe) a few years down the track. There is often a distinct pattern. They make a fantastic annoucement (like CFU did... DYE and SOO spring to mind too) where the share price doubles as traders chase profits and longer-termers top. Then UNLESS there are a string of announcements, there is normally silence. The traders begin to get out and you often get short-selling as people looks at the actual (versus prospective value) of the cash flows in the quarterlies. The short-trading problem is particularly problematic with the vultures around at the moment realising the weak position some small companies are in terms of financing expansion. On the buyers side, the people who are interested and believe are already up to their eyeballs and can't add to buying pressure.
The share has already corrected quite a lot since the highs yesterday and I will look to buy in around 60 cents, but will wait in case it trades lower due to the factors mentioned. I will also track this very closely in coming weeks and if another announcement comes out - as suggested it may - I will be only 5 minutes - rather than 2 hours - behind the crowd and will take whatever price it is at that time (90 cents or $1.20) and will pay it happily. If I had of been quicker I would have happily bought in at 60 cents right after the announcement too.
CFU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
