Ann: Trading Halt, page-135

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Jazz_200

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12/12/21

09:36

Post #: 58237712
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Originally posted by pilko3: ↑

Try this explanation Fawaz...
"The micro cap space, on the other hand, has almost no mainstream coverage. This can make it more susceptible to market sentiment and external market forces.
These markets are inherently high risk/high reward and are naturally more volatile.
Small cap markets are dominated by private investors who tend to do their own research and react to news the way they interpret and understand it.
So when an individual with a large position needs to sell-down to fund a family Christmas holiday after two years of COVID lockdown, it can significantly move the share price on low volumes.
This is why being aware of low volume moves is important. A brutal move to either direction is fairly common in the micro-cap space, with 15% moves either way all part of investing in the space.
A low volume sell-off of 15% in a company’s share price can give the illusion that a company is being punished for bad news. However, often the reality is that a $50M market cap company suffered a 15% share price fall from just $25k in trading volumes.
If a small amount of shares are traded because someone needs to pay for a wedding or a new car it can lead to a large change in the value of a company - all because there just isn't enough eyeballs on the buy side at that particular time.
Generally you will see the share price quickly recover the next day as the markets work the same conditions in the opposite direction. In the grand scheme of things, these moves are insignificant and more a result of buyers shutting up shop for the holidays.
For the astute investor looking to build a position, these times can present good entry points - especially for undervalued stocks suddenly made cheaper due to a sell-down on low volumes."

I borrowed that from a next investors email...kudos to them.

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thank you for the comprehensive reply @pilko3

WC8 Price at posting: 4.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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(20min delay)
Last 27.0¢		Change 0.020(8.00%)		Mkt cap ! $330.4M

Open	High	Low	Value	Volume
26.5¢	27.8¢	25.8¢	$1.655M	6.201M

Buyers (Bids)

No.	Vol.	Price($)
7	62536	27.0¢

Sellers (Offers)

Price($)	Vol.	No.
27.5¢	23968	2

View Market Depth

No.	Vol.	Price($)
5	55832	0.270
2	51915	0.265
2	175125	0.260
5	102396	0.255
7	384085	0.250

Price($)	Vol.	No.
0.275	1347	1
0.280	99809	2
0.285	92500	4
0.290	278194	3
0.295	121111	2

Last trade - 16.10pm 27/09/2024 (20 minute delay)

WC8 (ASX) Chart

Ann: Trading Halt, page-135

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Ann: Trading Halt, page-135

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