02-Sep-2022
Disclaimer: The statement in this micro researchletter presented are my own views, opinions and do not constitute to a tier 1or tier 2 financial advice or investment advice. This is a utilisation of purely sentiment-based data with wall street and non-wall street institutional chatter for some added spice.
I will hopefully be posting a researchletter soon, regarding e-Mobility future
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Good afternoon and welcome to an interimWall Street Underground update,
ASX 200 inclusion and exclusions listing ishot on every investor’s mind and why shouldn’t it be. Please be aware that large Institutions are provided a “Hypothesis Recommendations sheet” which is by no means exact but a broad bucket of hypotheticals. The Institution analysts also put together a month before a “Hypothesis listing sheet” based on various inputs and past history and most importantly future strategic trajectory. Please note the Fund managers and their analysts go through a due diligence process, a fact-finding mission and reconcile it with what the ‘prospective firms’ provide. This reconciliation is both qualitative and quantitative.
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The Institutional Technology process:
The analysts pour through data and ofcourse use their trusted tool ‘excel’ to show the analysis to their respectivesenior managers. These extremely huge excel data is feed into the Analytical tool for future Target price projections. The analytical tool consists of various future models, like if certain negative events were to happen; financial depression, sky rocketing inflation rates, presidential or political issues regionally or internationally, wars etc… The analysts already have the financial data and various companies strategy models.
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The analytical tool analysis various key themesfor the potential risk. So Risk reduction is utilized. Analytics originally was not used and was more qualitative but this adds various Tiered Risk appetite which affects the key reason why Institutions are in business … THE PROFIT MARGIN !!! Millions and millions of dollars are invested to build hypothesis quantitative analytics that includes data past and present to predict the future landing price point and companies’ potential strength. This technology has been utilised thoroughly but the integrations to social media and various chatter inclusions, external data systems integration is still in its algorithmic infancy but is starting to be utilized frequently. It also has filters for screening social media chatter, media uploads etc.
.But at the moment still in beta phase. Please note the simulation models were manually used in its inception phase back to Ray Dalio, Mary Callahan Erdoes, Paul T. Jones, Templeton, W Buffet. The power of computing and million-line codes bring the human thinking, foresight into an orgasmic financial computing system. But the power and creativity of the human mind and ambition is the driver of mathematical algorithmic systems to try and achieve the human longing to predict future outcomes. There is a whole briefing paper I can write simply on this incredibly fascinating aspect of evolvement.
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The Institutional Executive process:
The Portfolio Fund managers will discuss theseHypothesis Recommendations and Hypothesis list with the Executive managing theirtotal Fund. The Fund Executive takes it to the Portfolio Board who meet every quarter, including any emergency meetings. They are briefed and high probability proposals are recommended. But most of all Target “profit fees generation” which is the critical aspect is presented. This is the due process with a few variations.
So ladies and gentlemen the “Hypothesis Recommendations”and the “Hypothesis listing” were updated 72 hours ago. And the news of Inclusionsand Exclusions have started their chatter. This is the spice, who will be in, who will be out ? I was meaning to actually write this 72 hours ago.
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Now SYA:
Looking at the price action:
1st downturn bottomed at $ .24 centsfollowed by a climb to $ .31 cents
2nd downturn bottomed at $ .26cents followed by a climb to $ . 295 cents
3rd downturn (market is stillchurning its price tape) and has touched $ .255 several times this afternoon whileI am finishing to write this micro research letter.
So ask yourself as a “Investor” or just a “Buyer”would you not want to buy SYA lower and lower especially with new momentum news comingup? The answer is quantitative and qualitatively YES.
Please be respectful of all SYA holders,enjoy yourselves, stress is an affliction, Retail guys , we cannot manipulatethe price. We have bought into an amazing equity SYA, be mindful and have respect. You all are part of SYA. Encourage SYA holders, lift yourselves from the daily noise to the future goals of SYA.
Have a beautiful Friday and an amazingweekend.
Regards
OrdFin
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