great game play, page-7

Here is an interesting history lesson - the share price is not true the value of a company, only what the market thinks at the time.

We all buy stocks because we think the value is more than what they are currently trading at. Otherwise why bother??

Have a look at AOE and QGC in the coal seam gas sector. Both stocks hit 12 month lows before being taken over at substantial premiums.

QGC fell from $4.80 to $2.40 in the space of 2 months before a takeover (two weeks after the low of $2.40) at $5.75.

AOE fell from $4.50 to $3.20 in before rising (2 days after the low of $3.20) to $5.20 on the Shell takeover.

So in both those cases the market was WRONG - everyone who sold simply because the share was falling was wrong. The companies fundamental value was higher than the market was giving.

Maybe all these 'games' being played are because someone really wants this stock - they are prepared to go to significant effort to disguise the true value of the company.

If UNS wasn't worth a cracker, why both with any manipulation at all? There are plenty of stocks that trade with little or no volume whatsoever - no-one is interested.

This dovetails neatly into my previous post on institutional buying...