Weekly recap. Looks like a minor channel developing between...

Weekly recap.

Looks like a minor channel developing between 5.0-6.0c. Support at 5.0c is holding at this stage. Several attempts were made to overcome the resistance. The sell-off since the NAB Financial Planning announcement put some people off however I note the volumes remain really low but is not widespread. Any attempts to breach 5.0c were rejected.

So why is IAM trading at these levels. Here are my thoughts.

Milestone news is anticipated this quarter (MOU#2, MOU#3, binding agreement with Sentry) and we’re into the final week of the quarter next week. There is some nervousness as to whether the news will either come or it won’t. We’ve seen what happens when the expected news doesn’t arrive on time – traders leave IAM (and discussions on this forum turn to mud).

On the other hand, we’ve had a glimpse of what can happen to IAM’s shareprice just on expectation and excitement alone (eg when it peaked at 9.5c), imagine what it will do when IAM delivers! We know that in this period of silence that IAM continues to forge ahead with its business so silence does not equate to company inactivity. I like to reflect on Mark Fisher’s comments (interview with Greg Griffiths)

MF: …what I would ask is that please keep focussed on the goals the big goals of the creation of the dynasty solution. Don’t worry too much about the short term maybe a missed contract here or there or upset or sometimes if we go over along the way because in the large scheme of things they’re irrelevant. I’m not saying that any of that is likely to happen in the near future at all please don’t anyone worry about that. Just be aware that there is a significant entity, very significant entity being created here, it’ll have its ups and downs but you are in the right place you are on the right train.

Let’s see how it unfolds and good luck with your trading decisions.