Interesting to note the market depth of this stock! While I...

Interesting to note the market depth of this stock!
While I realise that market depth is fairly meaningless in terms of transparency for a company's share trading profile. . . . it does give hints
There cant be too many sellers left at these levels . . . on the basis of recent news and the evolution of ELD from a company you would definitely want to sell - to a company that has glimpses of optimism. This could drive a short covering rally and recognition that there might be something positive happening here . . at last (there is nothing like lows to cure lows)
Perhaps buying may be based on the perception of a coming boom in agriculture and aquaculture in the search for saleable protein - which seems very logical based on feeding the Asian demographic - and seems to be where the early smart money is travelling
Forrest - Wrights - Chinese et al
This would mark the return of a 'real economy'

But that isn't going to happen until any larger sellers have exited their positions
The seller of note from previous announcements is QBE who look as though they sold around 2% or the companies stock in the recent rally . . . they must be down to around 5% or less now
The sell side of the depth was loaded with millions for sale from 14.5c to 16c
Now there aren't any real volumes available to buy
If you wanted to pick up a larger position in this company it might be quite hard if you were a larger 'on market' buyer in view of how many are available on the sell side . .and you might find yourself driving price up to get a position - unless someone like QBE kicks in some more
So unless some selling volume kicks in this could be the beginning of quite a good spike
That is my intuition at any rate

I also note that Skaffolds fundamentals formula is calling this a 27c stock this year and 49c stock next year

The technical story also looks promising with volumes starting to kick in and time cycles ripening

If I were looking for a contrarian play in what i believed would be an upcoming 20 year boom . . this would be it . . but I am looking at the long term
I see it as almost like buying call options with no expiry at this price level - but with massive potential leverage in the longer term - if the management continue with this winning formula - and meet their objectives of paying down debt and remaining focused on value with their core business

At some point you have to call a technical bottom - after weighing everything up holistically
perhaps we have seen it in place now . . . .