AT1 FY21 - General Discussion + FA, page-101

On this pattern of buy on good news (being bad) let me share a couple occurrences this week on shares that behaved like AT1.

Now AT1 I watched for a few weeks and saw it drift from low 40s to high 30s. I was ready buy in. Then came some really good announcement and I jumped in at morning auction, bidding 42 and got filled for 41. I was very happy. Of course imeddiately the share fell back to 37 over the next few days. So I am sitting on a nice 10% loss.

DEM is a share I have been watching a long time. I know they just need contracts. Well they signed two in the last month, and the share drifted up to 23 cents. Then a couple days ago they signed a really big contract. So I think I need to get in now... so I buy at 24.5. Two days later the share is now 22.5 (on big volume) so a nice 10% loss.

BCN I have been watching for a a couple of months. Price is always 3.8 or 3.9 cents. Their September gold production was 10% over guidance. That is a great news, so I bought in at 4.1 cents. Two days later it hit 3.7 cents. A nice loss of 10%.

This is telling me something. Do not buy any small cap share on good news. As people already KNEW the good news and the price the day before the good news is the 'good news' price. So if you buy on good news, you are helping the 'buy the rumour, sell the news traders'. Now there was not even rumours about these good news announcements. But, it seems to me, that people (not me) are seeing and knowing the news before the market.

So I have kind of sworn off now buying on news. Seems a mugs game. And if I happen to have good news come on my holding, I should think about selling the bugger immediately. That really seems odd?????????????