Thanks for the all the feedback, below is a slightly edited repost of what I wrote this morning to comply with HC policy of not influence people’s opinion, whether/when to Buy or Sell. This was never my intention and let’s face it, is there any article worth it’s salt on HC that wouldn’t sway your thoughts either way even for just a fleeting moment.
The following piece is of personal opinion and includes observations made from past stock trading as a retail investor. None of this article forms the basis of financial advice and you should always do your own research and brush your teeth twice a day. (Although the tin hat brigade will tell you fluoride is a government conspiracy - ok, lets leave brushing teeth out, too controversial - might get deleted again).
Firstly I can see no feasible reason for KAI to crash to 1c under the current trading conditions, information and news stream. (This does not constitute financial advice and DYOR )
Second the stock became an insto play thing yesterday with a very well instigated pump off the back of holder confidence that this stock just keeps going up, green day after green day. We all bought into it - literally. But this was a text book play. Buy it up and then mid afternoon sell hard and keep on selling. Worked like a charm, took most retailers by surprise, myself included as we had told ourselves this will have a small pull back sometime, never expecting a beautifully instigated dump.
This morning on open they were back and the telltale signs where there on all of our screens. If you watched the buy/sell numbers on your screen you’d have seen the mysterious moving million sell order. Always a pip or two higher to avoid getting hit , constantly disappearing, moving and reappearing as the play moved. This play is all about confidence, it’s strategy to confuse and undermined your confidence in the stock and sell in fear of the stock crashing. Hell, one guy even posted that he could see the stock going to a cent.
Simple rule, nothing has changed, stand back check if there’s a new announcement, quickly google the gold price, check your trusty news service to see if Donald Trump has succumb to COVID-19. Nothing, well maybe step back and take a deep breath. Otherwise you’ll just be fuelling the dump strategy and the longer this play is allowed to run the deeper the damage to confidence in holding the stock. The people playing us have little interest in the future value of the stock, they crave volatility as this creates huge short term profits. 70% in 24 hours, not bad.
In short, fundamentals did not fuel the drop and fundamentals shouldn’t have created such a huge spike yesterday. Yesterday was pure pump and dump and today saw 55million shares change hands. Remember nothing has changed and testing is all ahead.
We all like to buy low but should always question the decision to sell and for God sake watch your screen closely, the mystery moving million orders are stacking the direction of the stock and pushing you into an emotional sale.
The above is all my own personal opinion based on years of trading and watching good stocks get destroyed by this kind of play.
Confidence is very difficult to restore after these gamers finish playing with a stock - I truely hope we can arrest this behaviour and move them on their merry way.
The best weapon is to do your research, keep perspective on the facts and timelines and if nothing materially has changed then question your motivation to sell. The only thing driving this stock should be exploration reports. Oh and the Gold price of course.
Additional note.
The Gold price was down a little yesterday, most gold stocks were down yesterday, we had been on a multi Green Day run, what a brilliant environment to solicit a pump and dump. There we were pushing 25 pips up while most goldies were 5% down - easy to see in hindsight - myself included.
Today we closed at 4.7 after an open of 5.1, gold stocks were down a little again today for most. I can’t help feeling that if we totally disregard the action of yesterday take the closing price of Wednesday of .055 deduct two mildly down days for all Gold stock and our closing price of 4.8 is probably in line with the market. From this and I think in the context of the market and any news on Monday, we will be starting the new week in line with other goldies.
Just please watch the behaviour on your screen and react accordingly.
Final note, Bobdplaya, I totally agree with you that selling of stock purchased recently at 1.1c would have played into the action yesterday, possible part of the overall strategy to max returns for Insto’s and lets face it 1.1c was a gift for all made even better if the stock ever finds itself at 10c and above.
Do your own research - constantly
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