My two cents worth as an interested bystander is that prospective purchasers need to weigh up risk versus reward here.
If you try to catch this falling knife, based simply on "it's fallen this far so it can't go any further", then you risk losing a lot of money. If you do try to catch the knife based on chart analysis (fundamentals are irrelevant in the current downtrend) then put a stop loss in place straight away in an amount you are willing to lose.
Alternatively, wait until an uptrend starts (which it will at some point, although once it does bottom it may remain stagnant for a period before moving upwards). Once the uptrend starts, buy in then. Sure you might buy at 0.45 by waiting for the uptrend instead of buying at, say, 0.35 by correctly picking the bottom. However, you cut down your risk substantially as compared to just picking a point and saying surely its got to go up soon.
As I've said previously, if it drops to 0.45 then its at all time lows. It may bounce of the resistance point at 0.455, or it may stagnate at that point, or it continue to fall.
Some will say that vba was oversold when it reached its low of 0.455 after a consistent downtrend for 16 months from 2.80 and that this is why it bounced....so, surely, it is oversold again and should bounce again (or so some would say). But don't forget the timing of the real sp increase and its correlation to the TOL / VBA announcment. The bounce was more likely as a result of some excitment of Branson going to be back in effective control of the company and then people just jumped on board from there.
VBA Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
