IMO, entirely...
1. I think it is inappropriate to look at a single stock chart and apply single stock technical principles to that stock when the whole market is crashing.
2. First look at the whole market, ww and local, and at what will constitute the floor for the whole market. See below-- WHOLE MARKET
3. Then look at what are the fundamentals
- What are the earnings
- what is the cash flow
- what is the revenue
- what are the prospects
4. So 1/4 is excellent, rest are zero. Investors are there to make money, either in capital gains or dividends, who is going to buy and hold PAR? Only those with conviction and a long view. The rest are traders, FOMO or herd.
5. Clearly some holders and a lot of traders have capitulated. Yesterday/This morning i bought at 1.9. (i had to go out!!) Mistake? Depends on whether you are prepared to hold until mid 2021. I am.
6. IMO. The problem facing PAR holders is the market price is not determined by holders. If you want to stop a slide and If you are disposed to buy, wait till the close and buy a handful if something close to the low for the day is still on offer. DYOR. see WHOLE MARKET below.
7. The market is wide-open to shorters. If you don't understand they are not operating in your interests think again. Write to your MP and ask for a Senate Inquiry specifically on how to end shorting, spoofing and layering of PAR and any other ASX stock. PAR is being shorted almost daily.
The WHOLE MARKET world-wide IMO has been significantly overvalued for a long time as result of QE and lowered interest rates in a low real investment state since before the GFC. Real Investment and financial investment are demonstrated by the difference between building a new house or buying an existing house. Financial markets have fattened on debt financing of buybacks and even paying of dividends (Apple) in USA in particular, and asset booms generally (Australian housing), excessive corporate debt (Look at Sydney Airport on ASX), and zombie corporate bonds.
The historic evidence from earlier crashes is that the stock market mean reverts to average P/E. Even today, P/E has only just almost reached that.
It is normal for market prices to continue down, why because earnings drop in a recession which looks likely even if there is a bounce economically as even more QE by US Fed and EU spark a recovery. I have no idea when that bounce will occur. IMO PAR will be subject to shorting, or pullbacks based on news (of delays), but also must reflect its lack of revenue in the minds of those who need to finance themselves over a probable recession, even if it is short-lived.
On that aspect check out
https://www.etfrc.com/articles/?na=v&nk=3305-7aeaf13598&id=99In retrospect every crash is a blip.
There will be a lot of sound investments in the market, after it has bottomed
GLTAH
Stay well, self-isolate wherever whenever feasible.
(20min delay)