"Can someone explain to me why PME price fluctuates so much on a daily basis?"I am certainly feeling well an truly fluctuated by the recent savage daily falls.
However, PME's high nominal dollar share price may be making it seem more volatile than it actually is in terms of percentage price change.
In my list of 195 stocks that approximates to the ASX200, PME's standard deviation of percentage change in closing price over one year, is 2.16%, which puts PME at the 67th percentile rank.
The average for the whole list is 2.06%.
One factor likely to contribute to extra volatility for PME is the lack of tradable stock.
The founders still hold 50% of the stock.
And apart from that, the effective free float of stock may be further constrained because other shareholders may be more sticky owners than is usual..
Another cause of volatility is that PME's high valuation makes for skittishness.
It is vulnerable to any news that casts any doubt over its hitherto consistent high growth trajectory.
Given PME's high PE, it is performing a high wire act and it is a long way down if there is a slip.
The current price falls would seem to have little to do with anything specific to PME.
At least I hope that's the case.
(I have never seen any signs that PME's financial performance data has leaked into the market beforehand.)
Rather PME's current decline seems to be contagion from the re-rating of the high growth stocks that have been riding the AI wave.
The wave is turning into a dumper.
We can only hope that the upcoming FY results confirm PME's continued high growth and high margin.
Some nice fat contract announcements would help.
I note that Gold in Sacks have just today raised their target price for PME to $148.
Below PME is compared with NVIDIA, which is one of the AI wave riding stocks...
Cheers
(20min delay)