patersons' arv buy recommendation: dec 3, page-7

asf

Good post

My opinion is that the C/R has hurt the profile of the company in the eyes of retail investors. This creates a continually changing register as impatient holders sell into every new run on price. It will take time to turn this around. Each small run up post C/R saw new investors/traders take positions but they become sellers as the price drops - this cycle continues until a bottom is found.

You can see from the May-Sep period in 2009 that this stock is played with - lots of long tails on the weekly candles - indicates there is very little opportunity for consolidation as traders run up and then run down the price.

Longer term investors will have no issue with the weekly fluctuations as they are more concerned with the underlying prospects but short to medium traders are easily spooked when companies shares prices are slugged after seemingly good announcements.

The most recent announcements regarding Mt Clement were excellent - 29th Nov saw more heavy selling but the one on the 9th Dec resulted in a strong close - maybe this is one of the first positive indications that the SI's (god knows why they are called this??) have exited their positions.

At the end of the day, though, retail investors are no match for institutions or their clients and once that sort of money comes on board, the game changes again completely - when this raising was announced back in Sept I said this would take months to filter through - other posters said I was crazy but look where we are now.

The tide will turn people but I guarantee you that 90% of the posters here who were holding back in Sept/Oct are NOT holding now - disgruntled and with no faith in management.

Marchello