Ask yourself if you responded and contributed to the degeneration which we witnessed the other day.
Then, cast your first stone.
Happy Easter.
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As a newby to trading I was so pleased with myself when two weeks ago I bought PEB at 63c and before long it was showing upper 70's. They got the go-ahead for the US lab and I thought the world's my oyster. So, I was flabbergasted when Masfen almost immediately dumped 10 milliom shares and the share price plummeted to 68c. Why would the Masfens sell now, I thought? Why would they not hang on with things looking so good? Do they know something that we are not party to?
When I calmed down, I came to the conclusion that the Masfens as large backers of Pacific Edge, now felt that the company did not need so much backing, and that they might as well take advantage of the huge profits they have made on their original investment.
Would this be the case?
Also, it would seem a lot of influence on share price must come from the promise or the potential. Now that PEB have got the go ahead in the US (and assuming no big news from the other potential customers), are we just going to see an upward trickle in the share price as US sales slowly build?
JUst one more question. Does what took place with the Masfen sell-off happen frequently? I ask so as to look out for it in the future.
I guess everyone has different reasons for selling and I would'nt know why Masfen has sold down some of their holding.
I have'nt done any calculations, but I would imagine that by selling 10m shares at 65c, they may well have got back all their original investment and then some.That means a big reduction in risk so it's probably not a bad move.
It is going to take a while to build sales so I would'nt be looking for anything fantastic in the short term. What might drive the shareprice higher in the months ahead is more deals in other regions or with large customers in the US.
It could be any number of things ,but selling enough to ''free carry''is certainly a common ploy.
One would think things would be slow and steady at this point,but you never know with this share.
The market in general is the other factor.
Outside influences can have a major impact.
If there is a correction[and the market is looking overbought IMHO]and you have faith in the basics of the co.,then thats the time to buy in[or dont sell]whatever the case may be.
Who knows,maybe Masfen is anticipating a market correction,but most likely is booking some profits.
Your absolutely right Sparky.
I said ''to a certain extent''but didnt mean to give the impression it was necessarily a bad investment.
But I believe you,as well as other informed posters have brought up the fact that there is an element of speculation in terms of variables.
My point was simply that insinuating that someone is a fool for being cautious is not really constructive.
It wasnt my intention to slag the co.