Market is a fickle beast. Get some good news and down she goes. another 1.5% so far.
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Market is a fickle beast. Get some good news and down she goes. another 1.5% so far.
For what it's worth read this on news.com.au
http://www.news.com.au/finance/busin...c35c2e594a562c
"The parties were scheduled to battle it out in court in November but after months of behind-the-scenes negotiation the deal was signed on Wednesday. News.com.au understands under the terms of the settlement, Lion has agreed to remove the yellow “A2” strip from its labelling. Lion declined to comment further."
Yeap queues at the shops were amazing yesterday according to Mrs Beagle...everyone spending like crazy and hitting their automatic teller machines ATM to fund it.
Normal service will be resumed from 18 December onward ...Synlait Milk now has double the drying capacity so I'm expecting a dramatic increase in ATM's ability to supply product from early 2018 resulting in another huge leg up in ATM sales. Expecting very good things from this company in 2018 and beyond. Just waiting for everyone to stop making withdrawals and then pounce on it like a hungry dog.
154,000 in one lump at $7.90 isn't helping - someone is overcooking the christmas dinner
But when is cheap really cheap with a growth stock that has put on 100% gains in just a few months, and on such high PE's? The are the times when a SP has topped and people are taking profits, not buying. Well, that's not completely true is it because the sellers always have a buyer, but whose making the smart decisions? One could look to short term trading indicators like the 50EMA support at 7.667 and the recent gaggle of support at 7.40. If it dropped below those two points, there's something more going on and perhaps better to accept buying a down trend (even a short term one) is not as sensible as buying a confirmed reversal upwards.
The PE isn't really that high for a stock growing this fast,with quality earnings,and about 170m in the bank. I didn't mention where I was going to buy in,I will let the market decide that as I always do.
At the moment I see a large flag pattern,this will either break to the upside if there is a catalyst,otherwise the price in my view will continue to cheapen,but I will not risk capital until there is a turnaround in price.
Over the last few days the smart ones are the sellers,there is also US market risk,if they turned then we'll be soft for a while.
Baa_Baa an interesting point though in looking at the charts today,22k shares traded and dropped 5 cents,It would be interesting to know what goes through peoples minds when they decide to buy today or yesterday as an example,with maybe a little bit of support resistance at this level,there is no real reason to purchase right now.Given that it is in a slight downtrend,they would have to be pre-empting any bounce off that s/r level.