Im starting to see a re-emerging pattern with stocks such as MNM and other speccies...It seems the SP does get played with alot by individual traders and broking firms in particular rather than move with market forces such as the dow etc.
im not saying theres no correlation between these speccies and the general market conditions overall. the bear market we are in right now undoubtedly has contributed at least a little to the drops we are currently observing. Its just that Im starting to think they dont play the large role we all assume they do
The dow tanked almost -2% last night, yet MNM was up 12% today. Its not making any sense to me how the general market is playing the lead role in MNM's price movement
the tactics used by traders and broking firms are aimed at bringing the SP to a lower price so that they may enter in on the action themselves at a discounted price. sheer fundamentals dictate the complete low the SP will go, and investors will provide the bounce once these shares are picked up by them. the evidence lies in the clear yet confusing manner MNM's shares are traded daily. like i said before, this isnt the only speccy thats getting this treatment. most are imho
my point here is that fundamentals like MNM's are solid enough to provide a bottom at, lets say approx 21c. from here the investors and traders will say enoughs enough because they value the company at that discounted price and will not forfeit any more drops in the SP at their analysis target. Once the confidence is built back up the SP will rise above levels we have not yet seen i say because of the large amounts of accumulation thats occured over the last 4.5 weeks.
just my thoughts
cheers TD
MNM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
