when will it stop sliding, page-3

Ive been following bbg for a long time. From my observations, it rises in the morning then relents towards the end of the day. The rise may only be a few cents range. I have lost a crap load trying to play the ups and downs. It has been frustrating and an unpredictable beast. It may certainly breach the $5 zone in the near future. It recently have difficulty breaking the 6.80 resistance, and nows its been broken. It seems to have a 10c resistance, as I breached 6.70 but bounced mid morning. I must say I have been silly enough to play with fire still lately but its range has been so low that you need to chase on volume. Hence increasing risk.

Billabong has certainly made me on edge when trading it. Holding over night can bring some fear. I personally am waiting for the dollar to change direction, but that may not change billabongs fortunes. One gets the felling that billabong that its world domination is crumbling, like any fad nothing lasts forever. Is there money to be made in a pure bricks and morter retail in this present climate especially with their world wide exposure. There must be places where parts of their business are running at a loss.

Where as there will be areas that are successful no doubt. This will mean that the business will need to consolidate reducing the profit margin. There must be a profit downgrades in the future, coupled with the currency cross rate margin reductions. Every US to AUD 1c increase must be reducing the profit margin by millions plus the margins are also decreasing on each products sold. Its simple mathematics. They would be better to set up their operations from the states. Makes financial sense because they must be getting hurt plus the announcements have been few and far between. It has been a tough trade and one can still not see the light at the end of the tunnel yet.

Brownie