director at it again-jeremy cooper, page-4

Mastermind5...when a director sells a large percentage of their holding...that's when I'll get worried.

Those of us who have been trading for a while recognise a genuine "sell" signal when we see one...and this is not it!

It was a parcel of 50,000 85c SLTO's sold for 10c ($5000) at the beginning of an obvious rally, which I actually see as a good sign that this director is not taking advantage of any spikes in the shareprice.

Now...if the management are not to be trusted as people say, then what do you think they have in mind for SLT?; Run the price down, so THEIR shares become worthless?; Perhaps they will sit at their computers all day, actively trading in $5000 lots?; Or maybe they will carefully release small parcels of shares here and there, in order to help with share liquidity and allow more people onto the register!

My guess is the latter...as it will ultimately help maintain a more sustainable rise in shareprice. The quantities bought and sold need only be small, because it is the "change of directors interest" notices that will have the biggest effect on sentiment. The simple fact that people keep posting about them proves my point!

SLT is tightly held...without an active market of buyers and sellers, it would just be sitting there, lucky to trade 20,000 shares a day! If this were the case, when a good announcement finally came out, those holding would all flood to take advantage of any buyers that appeared, knocking down any chance of a price rise...I have seen it too many times before! OKN is a classic; good company, great profits, even dividends, but for years the price has done nothing. This is mainly because there hasn't been any real active market in their shares. So...over the last year or so the directors have been "freeing up" the market by releasing some of their own shares and what do you know?...daily trading averages are rising and so is the price! They may own slightly less shares, but they are now worth heaps more! See how it works!

Now, I agree that director selling is generally a good sign not to buy into a stock...but it is not always the case! Sometimes you need to take a closer look; look at the volumes sold; look at the buys as well as the sells; look at exactly when they sold them in the trading cycle; look at what percentage of their holdings were sold; look into who sold...was it the director, or an associated (indirect) interest; look into what they sold...shares? options?; and so on!

Imagine you were a director of SLT and owned over 1m shares and 1m options. If you really thought the shares were as high as they were going to go would you;

1. Sell 50K SLTO options for a grand total of $5000, knowing it might hurt market sentiment and ultimately push down the shareprice!

2. Sell 250K shares, but buy 350K shares in the same week! Again knowing it would spook the market.

3. Or would you dump half your shareholding in order to lock in some profits!

mmmm...I don't know about everyone else...but I if I thought the price was heading south I'd be dumping! So...the fact is, that until we see this, the directors little trades are inconsequential.

I don't talk about all the stocks I am in, just the ones that I think are a worthy...and SLT is one that fits into that category. My current portfolio includes; OKN, ADU, AOO, OXR, SBS, TAW, UNI, DPL, IPN, BDG, SLT, MUL, SHG, TAA, CSY, CCE, CNT, KIM, IMU, IBA, SKR, GLB and BPT...yet I hardly post on any of them...why?...well, mostly because the majority aren't particularly exciting.

Mastermind5...by the way, you accuse me of ramping SLT. Well, if posting on a stock BEFORE a price rise is called ramping, then I guess I am guilty as charged. Some other stocks that I am also guilty of "ramping" recently are; MUL (at 1.8c), SKR (at 5.2c), SBS (at 3.7c), SLT (at 36c), ADU (at 20c)... AOO (at 10c)...shall I go on?

I notice you have recently posted on EBT, ALL and AMP...hope you have some others, as these aren't doing so well, are they?

You also state that until they "make their first sale" you wont even consider SLT. If that is your trading strategy, then I respect you for it.

Just be careful, because usually when a speculative stock starts earning money and suddenly has definative figures on which to base a valuation, you find the price, more often than not, falls considerably...this is often exactly when NOT to buy in! KIM is a typical example...it carried high valuations due to market sentiment and perceived potential, but as soon as actual incomes started to flow, it traded on valuations based on facts...so down it came. Just goes to show...facts are never as exciting as fiction! I am sure Kim will eventually do well and go much higher, but it will be a relatively slow road. Kim is now an "investment" rather than a "trade"!

Mastermind5, I take on board your contrarian comments regarding SLT and I am sorry if I seem to be having a go at you, it's not personal! I just don't agree with your assesment of the situation at this time...perhaps if the shares were currently trading around $3.00 or more, I would tend to agree that they were over-valued for a company without income.

In my opinion...and for what it is worth...SLT is a "no-brainer" at current levels.

I might be wrong, but at least I am putting my money where my mouth is; I started buying around 35c and have kept buying additional parcels all the way up. Yes...I have sold a few times too, but have always been a net buyer on any given day! I have managed to accumulate quite a few SLT's and SLTOA's...yet haven't been prepared to touch the SLTO's up to now, due mainly to their vollatility. I will however, look at getting some when the SLT's find support in the 80's.

...and I am prepared to keep accumulating SLT's for now, unless something weird happens, like a blow-out day or something...and even then, If I bailed, I would be getting back in as soon as the price corrected itself. I did this with UNI...sold in the $1.49's on a blow-out and got back-in the next day in the 70's. So if/when SLT's blow-out day comes, probably on the back of a really good announcement and recognisable by a daily rise over say 50% and a traded volume greater than say 8m shares, then I will be happy to sell!

So far I have been able to make a comfortable living out of day-trading, have been doing it for years. Among other lessons learnt along the way, one thing I have picked up is how to recognise a good thing when I see it!

Nothing you should put your house on or anything...maybe just the garage!

Cheers!