Nice post Scaggs. Wouldn't it be nice if we had some certainty...

Nice post Scaggs.

Wouldn't it be nice if we had some certainty with Solar Systems. In reality, they bought Solar Systems for peanuts in 2010, so if it is successful management have done very well.

As for the concerns of manipulation in this stock, I really don't see it. I watch this stock at work, and the small parcels are most likely execution algorithms selling on behalf of holders into an illiquid market (the most common of which is a VWAP). For the most part, HFT traders act as traditional market makers scalping profits, although they are generally less active in illiquid stocks (the only strategy I can see working in this stock is a trend algorithm, although the liquidity would mean pretty small profits). Having studied computerised trading I can say that I really wouldn't be too concerned as a retail trader. The only people who should be concerned are big fund managers/institutions, and traditional brokers who have lost their advantage (this is why they generally scream the loudest about algos).

I believe this is an example of apophenia as most of us struggle to believe this stock is going down because the market has spoken. For the most part, financial market are a random walk and the fact is if there were more buyers then sellers this stock would increase. It's just supply vs. demand.

Sorry about the off topic rant, back to SLX. Last night I had some time to read through the early research reports from JP Morgan and Southern Cross Equities. This coverage coincided with their 89.1m insto placement and wow their forecasts and assumptions are a big bullish laugh. I know I'm reading with hindsight bias although it is a reminder to treat the majority of speculative buy recommendations with caution as the companies almost always have a vested interest.

I'm not sure what the point is in all this writing, although I will reinforce that the stock markets are challenging, if you aren't comfortable with your investment you should sell and sleep better at night. It takes a lot of research to have a small modicum of understanding for this stock and it's markets. If you were a holder who bought into SLX at >$4 in the past and watched the price fall to $1.17 you would have to think about taking losses, and for the most part, brokers would be encouraging holders to sell the dog in their portfolios.

Hopefully we get some reprieve come June 30.

Be Happy.