its becoming really interesting now.
Today was the news flow with full negative news, including admissions by Star's own chairman that Star is not (yet) suitable to hold the license.
This is an incredible admission.
And yet by days ends, the share price had fallen only 3.6% (but in cents terms only 1.5c, for normal stocks, 1.5c is a rounding error).
Trading volume was also reasonably light (normal) post 15/4 announcement commencement of hearings at 33.5m shares.
Post the close, sellers outweighing buyers 20m to 12m (so could be further weakness on friday), however into the closing match a hard battle between buyers and sellers was occurring, with the match price down to 39c, but bought into the close to push it to basically the pre-close number!!!
I was watching today closely.
Today I made the decision into the closing 10min, after watching the deal flow, to make a bid at 40.5c, hit with the 40c closing final price.
So I am back in with a first position at 40c. 50,000 shares @40c.
Not a big position, but one with witch I have one hand in/one hand out.
$20k first position, plenty of room to dollar average downwards, but not too big that if I am wrong it will hurt me financially, yet enough that I can make a bit of moolar if the share price rises.
Lets wait and see.
I still don't like the forecast earnings against the share price, but how much of that forecast future earnings involves non-underlying future expenses.
A very difficult stock to forecast, but then against this I have NET tangible assets (forget book value, this number is useless). And even NTA I don't use as a 'value', I use it as more a discount against NTA against share price for a margin of safety at current share price, not that share price should go to NTA (refer to my discussions on this on several SGR threads).
Anyway lets see how this plays out from here.
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