Oops I meant overbought and obviously tranche rather than...

First 2811 Last

Share
Profile

Follow
madjae

357 Posts.

18

23/01/20

09:17

Post #: 42529753
Share

Originally posted by madjae: ↑

Sigh... no this is not oversold. A chart using MACD or other lagging indicator can not adequately take into consideration the fact that the company is over 4 times more capitalised than it was just before the raise. The price is the reflection of the market expectations of what WISR can do with the extra capital, as well as the (assumed) introduction of more institutional investors. Notice that the recent ramp up coincided with the release of the first tranche of shares from the recent CR. At a 20-30% premium, it would have been normal expectations for the price to fall with some easy quick profit-taking... but this did not happen. Remember the CR was supposedly substantially oversubscribed (many times over), if true, many of the participants in the CR that were unsuccessful (or wanted more) would have wanted to get in on the action when the first trance was released (expecting a price drop to do so). When it was obvious this was not going to happen, then you could make the case that some of these players would have decided to buy at market to at least get some fill.

Although I agree that market depth can be manipulated, over time it can derive useful information. As it currently stands, there is still substantial buying support here to support current price. Yes, there is a potential for this stock to fall hard! But those of us who were around the previous CR (at 6.8c) saw similar market behaviour to what we are experiencing now. It never came back to 6.8c in that case, so buying at 18c would seem wishful thinking IMHO.

@ImpulseBuyer please just stop commenting on price and price forecasts. I'm happy with your discourse regarding the merits of the company itself, but I don't find your inputs on price valuable at all, and it just frustrates rather than informs.

Expand

Oops I meant *overbought* and obviously *tranche* rather than trance (although the market is certainly dancing the way I like it right now)

WZR Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

What's causing the cost-of-living crisis, and how to navigate it

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

M4M

Macro, Norden set up transport solutions initiative for West Pilbara