I don't agree with your bearish outlook for the stock, but I do like hearing your opposing views, if just to keep my bullish feelings in check. However, I do also get the feeling that your interest in the stock maybe just a little conflicted? Esp. given your recent trading activity in the stock?
DEAN2011
Perhaps at the opposite end of the spectrum, maybe just a little too keen? But again, lots of good points/thoughts and a fresh perspective on the current developments - which is what's needed. Esp. given a lot of people here have lost a bucket load on PLA and therefore wont be able to recognise the current opportunity (assuming this is a big one).
I am putting my chips behind management being able to finally deliver on their promises and given they are also putting their money into the rights issue too. From my point of view the stock has well an truly been de-risked and at the current price presents a golden opportunity, which I am hoping to milk.
I generally watch the days trading activities and having traded the stock today I get the feeling that the BOT is just out to manipulate the share price. I watched it sell down the stock from 9.2cents to 9.0cents, dropping small parcels (approx 169 shares) once a minute, that equates to around 10k shares an hour. It was like watching paint dry and it filled my in-box up with part fill notices too. As with other days the small orders rolling though seemed to strip confidence from the market. The result I believe is that mum and dad investors then sir-cum to the belief that the stock is heading down (sound familiar cmbchina?) and drop their stock at below what they should.
I played a trick on the BOT today at 12.50pm. I had a small order on at 9.2cents which was part filled (1 min at a time for 50 minutes) and only had 4.3k to fill. I was the only bid order at 9.2cents, so I amended the order to bid 9.1cents. At 12.51pm the BOT traded about 50 shares at 9.1cents and about the same time around 7 orders totaling about 5.5k came on at 9.2cents, so I re-amended my order for 9.2cents and cleared it. This action seemed to stop the BOT in its tracks, as it was a full 18 minutes (at 1.10pm) before the BOT recommenced selling down the stock at 9.1cents.
Not sure this is insightful, but it certainly demonstrates what is going on. It's like slowly bleeding the stock and then once the confidence is drained, the predator is jumping in to clean up any big parcels that have been dropped onto the market and hence the predator is able to accumulate a nice substantial holding at a significantly reduced entry price. The couple of advance and retreat patterns over the past few weeks seem to suggest some thing is up. I don't think it will be too long before the 11/12cent resistance is tested, and believe the outcome of the rights issue might be the trigger for this.
Gus
PLA Price at posting:
9.1¢ Sentiment: Buy Disclosure: Held
