another consideration to add to the recent 23-24c plunge is the thought of tax loss selling.
Whilst the selloff was precipitated by a delayed first pour and cap raising at 25c, it would also seem logical to consider the practice of tax loss selling.
I looked at Volume by price for the last 12 months and it is clear that most of the past 12 months volume is above 25c. Given the rebound in the ASX and profits logged more widely, it would not surprise me that some are selling AAM stock at these levels to lock in some losses as an offset.
I'm not suggesting that this selling activity is a one way trade. I would be suggesting that there may be some inter account trading going on to achieve this outcome.
There is only three months to end of FY and I dare say the opportunity to lock in some 'losses' will disappear as we see the POG going up.
Keen to know what people think in this regard.
GC
AAM Price at posting:
24.0¢ Sentiment: LT Buy Disclosure: Held
