Calling the Wolf Pack, page-258

What usually happens on London's AIM market once long-awaited good news is released? The profit takers take over and collectively orchestrate a sell-off, others panic and further build the southward migration. The share price dives 10-30%. Exasperated at this deflating reaction the second wave sell off and the price dives another 10%.

Then the sales buyers appear and it all gradually begins to repair itself one inch at a time (Al Pacino), until we get an RNS announcing an unexpected fund raise / dilution. Bingo. Let's just take another 30% of the share price. And so it goes on. Seemingly one step forward and two back is often the case. And investors keep buying the illusion.

MATD? They're still fiddling. Some got bored and cashed in, others went to play elsewhere for a while, a few panicked a little. There are not that many shares in free float here. It doesn't take that much to add or delete 10p on this price - we've moved from 32p to 23p on that latest RNS. Drop a big positive announcement on MATD and it could be 40p+ in a flash. In the low 20s it has to be buying territory for long-termers boys. DYOR.

Local tips? MUS and CDV look interesting at these levels, especially CDV as a longer termer. Could look at PRL, although I'm not that well researched on it.

DF/