This month our share price got pushed down as the credit participants dumped into 0.003-0.001c. Furthermore, those who were patient, were presented with a perfect buying opportunity for 33% or 100% return on investment to date, depending if your buy-in was 0.0015 or 0.001c respectively. Our news flow was consistent this month we three announcements being released, the gap no larger than 2 weeks, or 10 trading sessions.
Property Connect continues to discuss with partners about commercialisation for the LiveOffer Rental platform currently under trial, with continues to transact. We also saw this month the new landlord functionality being added to the platform. This was at the request of our largest trial partner, so that real estate agents can demonstrate the three sided market place functionality to their customers. This will allow landlords to view their properties and approve the prospective tenants in conjunction with the managing agent. Real Estate Dynamics has a rent roll around the nation totaling ~17,950 from houses and apartments to commercial properties.
Discussions are also progressing overseas.
Figure 1 below, illustrates the volume each day in correlation to both the average daily and weekly volume over the past month. Futhermore, the legend assists in identifying any potential accumulation or distribution across the calendar month of May by large institutions.
Figure 1- Property Connect Holdings Trade Analysis for the Month Ended May 2018
The above displays a series of distribution phases leading up to the large sell-off on the 23rd. The first sign of the inevitable sell-off came as 30,000,000 shares were traded on the 3rd, subtle, but nevertheless, 10,000,000 more shares than the daily average. Another six trading sessions later, a larger 68,716,142 shares we dumped. It was this trading event in conjunction with others that indicated an impending larger sell-off to come in the not so distant future. Another eight trading sessions passed and then it came, a whooping 140,625,124 shares being dumped consecutively at the lowest point of 0.001c. Note, that the initial dump was roughly 80,000,000 shares on this day, the rest of the volume came from panicking retailers, and a small number of cross-trade buyers.
If you didn't manage to pick any shares up at the lowest point, the 24th offered plenty of buying action, with 40,650,000 shares being purchased at the cross-trade for 0.0015c.
The remainder of the month was quiet until today, the 31st. It started off with a 30,000,000 buy order at 0.002c in the morning auction. This order turned out to be real. A few minutes passed and another 23,000,000 shares were scooped up, thus resulting in a feeding frenzy as the last of the shares were gobbled up by startled buyers. The reason for today's possibly buy up could be due to the number of announcements released by the company stating, "LiveOffer Auction platform is ahead of schedule and is expected to be launched in early June, 2018." With today being the last day of May, this is a real possibility. Figure 1 shows a possible window were we could expect the LiveOffer Auction platform to be launched. The weekly volume is displayed in figure 2, evident below.
Figure 2 - Weekly Volume of Property Connect Holdings for the Month May 2018
Another sign of the impending sell-off on the 23rd was the sheer lack of volume traded throughout week 3. This indicated that no one was willing to buy or sell, hence indicting to enact caution. When extrapolated among other factors, such as the ones previously stated, this was sufficient evidence and reason to stop buying at the current prices, and get in line for a possible dump.
On the other hand, it hasn't been all bad news this month. It has been a very constructive month for all. The credit participants have been flushed out, steady news flow from the business, and to the surprise of some, there has been a fair bit of buying.
Figure 3 below represent the broker data for the month. Figure 3 - Broker Report for the Month Ended May 2018
Our major sellers/credit participants happy to take whatever they can for their part, not interested in the unfolding story. Despite this, CommSec retailers have been the majority buyers this month with a net volume of 32,470,109 being bought.
Following this, AusInv and Pershn have both added a further 25,000,000+ share to their position. Judging off their buy prices, 0.0018c and 0.0016c respectively, it is fair to assume both bought majority of the cross-trades on the 24th and potentially had some buy orders filled at 0.002c on the sell-off we experienced on the 11th. With both parties having such high entry prices in regards to today's current price, we could expect to see the share price continue to climb or at least consolidate at the current price step before continuing. With the LiveOffer Rental platform currently under trail, this could quickly become the business's first stream of revenue, alongside the soon to be launched LiveOffer Auction platform, I'd expect both brokers to be buying for a medium term hold.
