my thoughts

Just a few points that I personally feel are important after reading through the chaos that was this thread today.


- It is clear that many had over extended themselves on this one stock, whether it be through margin or over commitment within their portfolios. The pattern of the selling made this quite obvious. There was no churn up or down, it was just panic hitting market.

- There was a sizable bid around the $8.00 mark. However it may not be there tomorrow.

- If this was serious institutional selling, volume would have been WELL over 10m.

- Management have not deliberately tried to sabotage the share price. Any suggestion of this is nonsensical and sensationalist.

- Inconclusive does not mean no gas.

- Today is Thursday. Management have issued a market update every Thursday for the last few months. They had nothing of note to state today, but clearly felt compelled to make a release to maintain consistency. If this release had been on a Wednesday or Friday, I would feel differently about this sell down.

- Tomorrow morning will be interesting. Value buyer vs the panic seller. Trade carefully.

- And finally, one of the first things I was told when I began my job as a prop trader was that the market(s) can stay irrational longer than you can stay solvent. I feel this is an important point to note at this juncture.