Do you remember Oct 13 2008?That was just after the big fall...

Do you remember Oct 13 2008?

That was just after the big fall with the onset of the GFC & suspension of the Crux farm out.
Opened at.479
High at .488
Fell to .275
Lots of up and downs, volume 24.8mil.
Ended the day at .368

21st Oct 2008
Bounced from previous lows to close at .488 with an intraday high of .523 on a vol of 11+ mil.

27 Oct 2008
Low of .35, close at .372

10 Nov 2008
High of .616 Close at .576

Lots of ups and downs subsequently according bad news of various kinds, rumours and market manipulations!

This time is a little different but there are some clues as to punters behaviour in these situations.

Differences this time:

1. NXS is on track to do a deal and has the finance set up to proceed
2. LT is now a producing asset bringing in regular cash.
3. The "bad news" is subjective and related to a personality, and not (as far as has been divulged) anything wrong with the company.
4. Huge difference in volume transacted, 122,73,723 shares. I think that's a record for NXS by quite a long way for a market drop.
5. 50% drop in price, exceeded only by a similar drop at the start of the gfc when the farm in was lost.
6. From anecdotal evidence, there is comparatively more trading now done by "professionals" who are more reactive and have better trading facilities. This tends to make the market even more volatile.

Similar things this time:

1. The general market is very reactive to any hint of bad news.
2. People (and traders) still react in the same way in similar circumstances.

Assuming the fundamentals of the company are sound and that people still react similarly (and they are likely to), there is a reasonable chance of a rise within a few weeks to a level exceeding that prior to the fall today. Any hint of good news re crux will send the sp speeding on its way up.

So take heart, all is not lost!

Take this opinion with as much salt as you like!

Cheers.
Pesa