Hi AgainThe Fosters SELL recomendation confusion adds another...

Hi Again

The Fosters SELL recomendation confusion adds another layer of intrigue to the current situation. If it was part of a sting operation with the author of the broker advice acting in isolation for personal gain, then that is one thing, but if it was part of a broader based misinformation campaign, then I would expert concerted buying to be building on the register.

The next couple of days will be telling. If the shares held in Nominee accounts start to subside then maybe short term trading maneuvering has been in play with many shares onsold into Thursday's announcement. If they don't we could very well have a Game On situation.

In any case shorters appear to be losing interest with the cumulative position as per Fridays report shrinking to a low 398,672 (ie as at 23 Aug) That is the lowest it has been for a very long time.

If the informed money (yes, they have cleaned up big time with their short positions) believed that the company was an absolute dud, targeting the $1.20 prediction, wouldn't they be increasing their shorts, not extricating themselves from them?

And if a consensus of market psychology is generally wrong, as it usually is, doesn't the cacophony of noise on the forum suggest that the stock is more likely to reverse from here than to play into the hands that are all talking it lower? Certainly that is what happened when practically everyone was positive including myself?

Speaking of which, who would have thought that a jorc approved 1 mt of copper in the ground with enough confidence to start to establish ore reserves would cause an avalanche of selling? While I did mention that "Strongly anticipated news seldom delivers the sort of results anticipated" little did I expect the harsh sell down. IMHO, the resource upgrade should have at least supported pre announcement prices.

And who would have thought a broker review that made absolutely no sense would have spooked ardent believers?

Next week the market should start to provide a few answers. Commonsense should come to the fore as well especially now that the blind panic appears to have dissipated.

At least the mechanics of the market will demonstrate if anything really is going on behind the scenes, as we work through the trading volatility as per the usual T plus 3 processing of trades completed. The impact on the register of last Tuesdays's surge and last Thursday's dump into a promising company announcement should be known by Wednesday of this week.

Stay tuned!

Cheers
Nev
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