The unknown impact of the recent Red Tricycle acquisition NB: by unknown, the assumption is that it will be positive, but there has been limited time to get real world data on the impact, apart from a recent update on sales growth that is likely tied, in part, to that acquisition
The fact the SP rose too fast on limited news towards the end of last year and a correction/profit taking period ran into the broader COVID 19 issues on the market causing what, in my mind at least, was the SP to drop far too low.
As a result I think we're seeing a combination of people trying to time the market and ride the upswing back to a more reasonable SP and some people who got in some time during March, profit taking.
The timing behaviour is compounded by the fact that there has been, for some time now, large swings in the SP so timing that upswing would appear to be driven to some degree by speculation rather than people looking to buy low and hold for the long term. That's causing a lot of twitchy fingers with cursors hovering over the buy button - especially when you see things like Tuesday's huge gain for no apparent reason. My assumption is its a classic case of buy the rumour, the rumour probably being that as the buy side and volume increased for no reason people have assumed there's some positive announcement likely to drop that will remove the doubt around the Red Tricycle acquisition and push the SP back up towards previous highs. When, as was the case yesterday, no news came out, some people started to sell the news, or in this case no news.
I suppose that's a long way of saying I don't think it's a pump attempt just the SP doing what it's done for a while now with recent history and market conditions acting as an accelerant/decelerant.
TNY Price at posting:
$1.20 Sentiment: Buy Disclosure: Held
