No I don't think there is panic. The reality is that at this end of town there are very few buyers that want to stump up money before half year results and the market stabilises. The reality is that I like the rest of the herd have had a bad quarter to end of December. I am not being brave at the moment so I have not put a buy order in. I need to understand why I feel a bit nervous. I never expected a quarter that was going to be this bad.
However in a few of my smaller stocks I have noticed the same lack of interest in buying the only way you can sell is if you are prepared to take a huge discount or there is a share buyback. .
Some that I see are:
1. URB - There are buyers at 90c but the NTA is at least $1.06. Some punters think that as there are a whole lot of property sales to go through then it could be closer to $1.15 even $1.20. The moment sellers come in it drops.
2. OVH - Had a great announcement selling a part of the business and achieving about 30% of its market cap in doing that. It has cash no Debt and growth. The price keeps drifting lower as people try to sell.
3. ALF - If it wasn't for the share buyback who knows what the share price would be. Each day they buy back a fairly high volume.
The larger LIC's seem okay but smaller companies and the smaller end of town is much like 2009 fear overcoming greed.
I don't think there needs to be panic and the volume is small. I thought of buying some of the stock today in GC1 but really I am already overweight.
I would rather wait until i can see the first quarter of 2019.
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