MXR 6.67% 3.2¢ maximus resources limited

tightly held reflected in low sell volume

  1. 3,267 Posts.
    I posted this on the Gondwana threads and it mentions Maximus as both Gondwana and Maximus have recently gone ex bonus and are experiencing very low volumes....
    The post...
    "I thought I'd post my observations on "big Money Buyers" referred to in a recent post.
    My thoughts on the actual extract about "Big Money" from the investor centre website.....
    the extract....

    "2) He (she) is BUYING to make more money – the stock is likely to rise in the near future. All else being equal – BIG MONEY investors do not think their investment is going to go down!"

    big money .. "have access to more complete facts about some stocks than you or I. If we could find these “Big Money Buyers” then we could also locate high potential “BUY” opportunities using their research."

    Part of the "Big Money Buyers" strategy is to invest like one of the philosophies espoused by Warren Buffet, i.e., buy when no one else loves the stock, and not when everyone else loves a stock.
    A lot of the buying in Gondwana in January was potentially by the "Big Money Buyers".
    The buying volume in Gondwana Resources was in large slabs and the recent, as well as the present volumes, are very small, with a distinct lack of sellers, suggests the big money buyers are holding the stock tightly, as they do. A lot of the days when Gondwana topped the asx volume records earlier in the year was accumulation and the stock price went up sharply.
    When a stock declines and small volumes are present, it reflects smaller traders exiting for what ever reason they do. This is an important observation and comparisons in the opposite can be seen with the "Big Money Traders" become "Big Money Sellers" , like those who are currently selling in large volumes, many of the big cap' stocks like the banks,Oxiana, BHP and Fortescue. The rapid share price falls in Fortescue and Oxiana would not be as significant if the falls were associated with small volumes which would mean the "Big Money Investors" are holding ( like they are holding Gondwana).
    There are many companies with large market capitalisations that are being sold in large volumes. This is not happening with Gondwana.
    It works both ways for small volume days and weeks.....a company's share price can increase or decrease by large percentages.
    It doesn't take much to drop or increase a low volume market depth.
    When the buying or selling is associated with large volumes, it can indicate the "Big Money Traders" are active either buying or selling but when the buying or selling is in small volumes, it's usually small traders and reflects general market sentiment but not the "Big Money Traders".
    With small market cap' company's like Gondwana and Maximus , their recent share price declines can appear to be exaggerated due to the percentage changes but the actual dollar values are small due to the small volumes and small number of shares listed for sale. The buy volumes are also small and this compounds the volatility.
    I see the small volumes offered for sale as a good thing for Gondwana and Maximus in the broader context of an overall bear market sentiment.If the sell volumes were associated with large volumes I'd be a bit more concerned. But they are not and I see both as longer term holds as they are both in the early stages of large exploration programs relative to their small mc's. As they announce the results of their exploration, the market will assess the relative value of what their results identify and if it's good, and if the market wants part of the company, the share price, the market cap and the volumes can increase accordingly. Day traders get frustrated at times of low volume but for long term holders, a decrease in share price is a paper loss and the loss only becomes a real loss if they sell at the lower prices and turn a paper loss into a real one. For those who hold longer term for the exploration results etc, their portfolios pick up again when the share price increases back towards and above their average buy price. Discipline, a good trading plan and patience is required all the time but even more so when stocks are over sold on low volumes."
 
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Last
3.2¢
Change
0.002(6.67%)
Mkt cap ! $13.69M
Open High Low Value Volume
3.1¢ 3.2¢ 3.1¢ $5.991K 192.3K

Buyers (Bids)

No. Vol. Price($)
1 263632 3.0¢
 

Sellers (Offers)

Price($) Vol. No.
3.2¢ 105228 2
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Last trade - 12.29pm 02/09/2024 (20 minute delay) ?
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