NEA chart, page-419

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Gillysrooms

10,438 Posts.

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22/02/17

15:38

Post #: 22816550
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Originally posted by Blommer ↑

It was just based on market psychology. Since the SP had been dropping so quickly everyone wanting to buy would have been waiting to see how low it went. It signalled the SP moving into TA behaviour rather than FA.
Eventually it had to stop though as it eventually passes too much below perceptions of what its worth in FA. Once enough people started buying all the others on the sidelines waiting to see how cheap it was getting would have had begun piling in too.
Traders who play this idea also join in and make it the reality. Its still in a TA phase imo though now on the upswing.
Its got much less to do with the company performance than the short term SP movements.

If you want to buy now rather than in 6 months it depends on whether you believe they will be able to boost their sales in the US significantly over that time or not, if they do not it will fall again post FY results, probably worse than this time. But if you do want to buy back in now I'd say hopefully we've seen the bottom. All imho

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I'm thinking it's winter in USA and lots of snow in certain parts of USA which won't make customets too enthusiastic in subscribing to see snow cover and then in California where my grandfather lived early last century they might like to see the dam damage and flood plains etc

I'm just guessing here of course but I am wondering what all those tender losers will be doing to win back co tracts NEA has been winning by undercutting their prices. Are they going to just roll over and let NEA steal their good lifestyle? Has anyone got any reports on the ground?

Last edited by Gillysrooms: 22/02/17

NEA Price at posting: 53.0¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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