@PennyP @wombat53 @Ophir @snakepitt @speculator101 @rise from the ashes @AverageJoe
In a vain attempt to understand your knock out trade from last week in PSF, I’ve gone back to review, and have come to the following understanding…
Pre-movement stage
From 1
st Jan to 4
th Mar there was little to be excited about from what I see.
The share price had only increased by about 33% in a time period where gold majors increased more than that, so it was a non-performer share price wise
Volume averaged about 3.9 million per day. No major ups or downs and taken on its own, nothing really special there other than a few odd days which might be attributed to insider buying (this we will never know).
Go time
7
th Mar 9:56 am sees a Trading Halt hit
8
th Mar 9:45 am sees the following announcement “Accelerated Revenue Results In Reduced Capital Requirement (PDF)”.
This announcement was super positive containing phrases like “significantly beyond initial expectations” and “As a result, the previously proposed capital raising requirement of A$7,000,000 has been cancelled”.
The 8
th Mar daily volume jumped from 2016 daily average of 3.9 million (1
st Jan to 4
th Mar) to be 56 million. Volume continued to be much higher seeing the daily average from 1
st Jan to 22
nd Mar reaching 22 million.
By the end of day on the 8
th Mar, the share price Opened/Closed/Daily Low at 0.014 and had a Daily High of 0.016… So the share price didn’t move at all.
The probability/gamble
So if I read this Company Announcement right after the Trading Holt on the 8
th Mar, which had language that even a goof like me could understand, I would be sitting there thinking why this stock hadn’t moved from about 10:00 am to about 3:00 pm.
I would then take $100k and buy PSF before the close at 0.014.
On the 15
th and 21
st Mar this stock reached over 0.400 where I sell, in turn crystalising a 100% gain in 6 days.
Conclusion
Start watching for Trading Halts and reading the news after the fact to see if this is reflected in the share price!
