ECS Price Action, page-2150

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wasko

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04/04/24

23:41

Post #: 73197495
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Originally posted by wolfk: ↑

Very quiet on the ECS front over the last week or so.

Today already having exchanged over 5m units, volume we weren’t able to see since 27/28th Feb.

Positive signs that the selling into 2.3c was rather quickly supported and taken up by the market. Would be relatively confident that the selling is still coming from our lovely and generous institutional and sophisticated investors realising a healthy 6.8% profit from their 2.35c selling prices. I personally cannot see any meaningful movement unless there is a further distribution of these newly generated shares back into the market.

~3 weeks until our next quarterly result. Historically cash receipts have decreased in Q3 so to be taken into account.

ECS have just listed a job vacancy for a FT electrician to work on site to facilitate the commissioning of new equipment (suspect it’s for the building of the new tents). So it seems that the growth is taking place on site as expected. Looking forward to seeing what tangible progress has been made since the raise.

Technically, 2.3c is the 200 day SMA, 2.4c is the 20 and 50 day SMA. So expecting this narrow price channel to be tapped in the next couple weeks. Super low volatility, although cyclically we are due for an uptick in this, more likely than not to be an upward trend as a result of the positive trending linear regression, RSI and bouncing off the lower percentile of Bollinger. As well as the whole market basically being at a loss at 2.2c, general market sentiment and profitability, no genuine reason why we should see SP dip below here.

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Q3 cash receipts have dipped in the past, however potentially offsetting this will be the new contracts that started in Q3. They also had a much larger stockpile of inventory starting H2 this year than they did starting H2 in FY23 (see starting inventory below):

It makes me wonder if the previous dips in Q3 were primarily driven by a lack of inventory to sell. Guess we'll find out soon.

ECS Price at posting: 2.2¢ Sentiment: Buy Disclosure: Held
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