no... still can't work out why the smashing..., page-4

Also...

For those commited to this company...such forced trading activity (purges), allow them to buy more at lower levels, thereyu averaging down their existing buy-in prices.

MEO is a good study here...similar tight stock, not trading great volumes each day...then bang, it was absolutely trashed on bad news, way beyond relativity, with volumes unheard of for the stock.

There were not that many buyers...just like WDS today...but they were manufactured, with heavy churn trading to attract the day-traders...to help them offload where they have to (index.fund adjusting), but also to help average down in the cases where some will choose to hold.

The lower pushed the stock today...the better the end result in terms of market activity...not only did it allow a lower VWAP to be achieved, but it also made the stock more and more attractive to the trading community, more or less ensuring buyers where they previously did not exist.

Further, it is not unknown for brokers with a "sell today, regardless of price" instruction, to use said stock to help their own causes...or those of associates...to get cheap stock. First push it down, holding back on buying in...then buy it up from its bottoms.

Its all part of the grooming process when things go pear shaped.

If some bigger players want to bail now, they have a much better chance of doing so...and if they don't, then the increased free-float for this stock, on the back of a now very much interested trading block, will also come in handy on any swings that can be generated, or indeed, used as free-float for those that sold and may eventually want to buy back in.

Some are happy to sell...then sit back and watch on, delaying any re-entry with a more stable picture...even if it means they pay more to do so. At least with the higher volumes, they can get back in more easily, whereas before, trying to buy a million of these would have pushed the stock to silly levels.

In short, days like today de-risk the stock...to some extent...improving a holders capacity to get in and out of the stock as required.

Typically, as was the case with MEO, the cost of such activity is a share price way out of whack with the realities of inhenrent value...we can take advantage of this if we know what we are doing.

WDS looks like a decent buy to me...here we have a growth story, with income and profits...but one temporarily impacted by potentially one-off issues, I say potentially because we are assuming we have been told everything here. Regardless, todays normal value equation, as typically played out in the market depth, was overun by the supply/demand equation being tipped severly in one direction.

It doesn't matter how cheap a stock is...when the depth is flooded with sellers, the only way is down.

We saw this today...after which the stock appeared to settle, more or less corresponding with what appeared to be the end of a large sell line. Who knows who...or why they sold...but they did, and were responsible for setting the lowws for the day. If not tomorrow, then in the next few days, I would expect to see this trading back above the bottom bollinger band...it is currently waaaaay below it, clearly in oversold land.

If so, we can expect to see the stock approaching $1...if not more...assuming of course the market was told everything today?

Cheers!