4) Concern – TON in downtrend
One of the great TA lessons I’ve learnt from MNS holder
@Tradergimp is that TON is in a perpetual downtrend while MNS is in a perpetual uptrend.
Perhaps, it is more appropriate to say that TON is in a trading range and here are some very good charts by
@mitta and
@Dr.Seuss
Here are some comments from
@mitta that I fully agree with that TON is in a trading range – seems to be 22.5 to 32.5.
http://hotcopper.com.au/threads/chart.2558416/page-121?post_id=15978698
http://hotcopper.com.au/threads/chart.2558416/page-190?post_id=16020395
And here is
@Dr.Seuss chart
http://hotcopper.com.au/threads/chart.2558416/page-120?post_id=15977167
http://hotcopper.com.au/threads/chart.2558416/page-72?post_id=15961511
From what I understand, Dr.Seuss trading range was 22.5 to 34 while mitta’s range was a little tighter at 22.5 to 32.5
Once more - I fully agree with mitta and Dr. that TON seems to be in a trading range
Following are some graphite stocks
TON SYR LMB KNL MNS MOZ MTA TLG BUX LML AXE SER MRF WKT IXR BBR
Check them out and most of them are down from their highs and in some cases very materially. So, Tradergimp points out that TON has gone down from highs but this is
not just limited to TON but generally all graphite stocks and in fact all commodity stocks. I just showed few days back how even commodity giant Glencore lost around 80% in a year.
MNS might have been the exception but then it is key to note that MNS was starting off from a very low price last year, and hence the rise. I don't want to take away any credit from
MNS but I noted some time back that MNS diluted market cap is around 250 million compared to TON's 100 million and TON is hence very cheap still, compared to all super pits.
I'll just highlight when I started commenting on TON
Date of my 1st analysis - Sat March 7
Last close (March 6) of
TON – 15.5 – current price of 23.5 – up by 52%
SYR – 4.72 – current price of 2.65 – down by 44%
MNS – 27.5 – current price of 43 – up by 56%
There are ups and downs in share price. I’m not going to deny that I would have loved to have sold at 71c and bought back now, but it is very hard to predict these things. What I do now is that on pure fundamentals, selling now seems plain silly. It is important also to note that many TONners are all gloomy about the company’s share price despite improvements being made in share price and market cap over time.
(20min delay)