AXM 0.00% 1.1¢ apex minerals nl

I'm no expert, but I have read that when a stock has had really...

  1. crm
    85 Posts.
    I'm no expert, but I have read that when a stock has had really good news and is about to take off, investors with the buying power depress the price to shake out the stop losses and try to panic small investors who have not seen the news to sell out.

    The big investors keep selling in large amounts but keep accumulating a net position, knowing the stock will do well in the medium term.

    I don't know if this is happening here (DYOR), but I'm pretty sure it happened with CDU about 1 or 2 years ago and I think it happened with AOE at 99c when after massive buying by the directors the share price slid down to 90c (thereby flushing out a lot of stop losses) and then after 2 weeks shot up to about $2.70, as I recall.

    With CDU I think the ASX warned off this practice but it is difficult to regulate. Not 'Caveat emptor' but 'caveat seller!' (whatever the Latin is)

    -- If you want my advice - don't take my advice!
 
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