The Drop, page-27

After some research and consideration, I offer that the sp performance when compared to the ASX Energy sector has largely tracked the same path over the last year or so albeit understandably with much greater volatility. That is not unexpected for a company at this point in its development though.

Small caps are notorious for their volatility anyway, which as many have stated here provides for trading opportunities (and good luck to those that do). At this point however, as the buyers have retreated, we have seen relatively low volumes push the sp to the near 12 month low of 18c and that has a ‘scare value’ which can be exacerbated by the ‘trolling effect’(note the overwhelmingly high percentage of such posts since the down turn after the recent spike on good late June news).

Some may well push the sp lower in the very short term on these low volumes but most (particularly those with large holdings) will in all likelihood continue to hold and as the sellers dry up the sp will return to a market equilibrium. Bears and Bulls stuff, I reckon particularly since late June which has been a very volatile few months.

My personal call: Buy on these lows and hold for the re-balance.