What a Real Chart looks like, page-2

The other take on looking at moving averages is that the longer a share price hovers around the same level, the more they will come into line .... so they may not mean anything at all!

Given the change in characteristics of this company over the last few months, I am not sure that historical charts have any real meaning any more. The tailwinds we could have gained with blue sky pricing were dissipated last year by the destruction of faith caused by the directors selling vast numbers of shares; there is now very little faith in the integrity of the board and especially the CEO since he resigned his directorship purely to escape scrutiny.

I also have concerns about TC participating in the capital raising, when he has inside knowledge of the company workings; it smacks of taking advantage of this information to gain an instant profit. Once again, not being a director probably allows him to do this.

With this in mind, the company now must stand on its merits. Those merits must be earned by generating revenue (and earnings), and the share price, I suspect, will react accordingly. Whether the price can build prior to (and beyond) proof of earnings remains to be seen; it will take something of a leap of faith by shareholders for this to happen. Given that we should be able to expect earnings of around $8M over the next year, a PE of 20 puts us bang on the mark for the current share price.

I am expectant of great success with SMN, and that the share price will climb according to the contracts signed. I am more than happy with this, it makes us far less vulnerable to the insane fluctuations which occur when the SP is based upon sentiment alone - which is what data contained in the historical price chart is based upon.

I think that the chart is now useful for reading short term trends, and picking entry and exit points, but I am pretty certain that the shenanigans by the BOD last year have corrupted the historical data beyond redemption.