We both know that share prices do not always do the expected. In this case there are reasons for my call.
Firstly, as I mentioned, I am taking the bottom at 33 cents not your 38 cents which in fact is 37.5 cents in looking for the 61.8% correction. The market has pushed it 1 cent further to 49 cents.
Secondly, there is a perfectively good wave count -- wave 1, 33c - 47.5c, wave 2, 47.5c - 37.5c, wave 3, 37.5c - 78.5c, wave 4, 78.5c - 49c.
If that wave count is correct, wave 4 cannot penetrate below the top of wave 1 which is 47.5c. Wave 5 may have started from 49c.
The cap raise certainly put the cat amongst the pigeons from a wave count point of view but it still looks feasible.
On the other hand, overall low volume makes wave counts not all that reliable.
I have always proclaimed that every shareholder, even those buying up to $2.99, will finish up making money if they keep their shares. It will be not what price you paid but how many shares you have when FAA approval starts the upward surge in the share price.
SMN Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held
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