follow the herd

I tracked AFG all day and was in and out of it at various stages - made a bit in the morning, gave it all back this arvo.

IMO, all that happened today was a herd mentality driven later in the day by an oversupply of shares as a result of the directors margin calls and probably some hedge fund activity.

The Allco Principals Investments letter announced to the market today makes the directors look like twits but their saving grace is that the same thing is happening to a number of people - directors and punters alike. The dust will settle very quickly on this one.

At the end of the day the fundamentals stack right up on this stock, forward earnings look good relative to the current price and they are just about to do the results announcements. The company has said twice now that it expects a strong result and doubtless the share price will follow accordingly.

I'm holding a position overnight which I am completely comfortable with. Once everyone has stopped playing silly bvggers in the next few days this will recover significantly - perhaps not to the dizzy heights we saw last year but certainly to way above close today.