Long white candlestick today. Last Monday evening chartist blogs confirmed SELL and next day ( Over 3 million sold at 42 cts at opening bell ) counter went up 20%. Charting is useful but don’t think should be used on its own. This counter has already gone up 77% this yr . Will likely remain vested until RTO . My views only.
Monday evening the Chartist Blogs issued confirmed BUY . Yesterday morning, traders who followed blindly went in to buy and were whacked as price dropped 7% by end day at 53.5 cts. Chartists make 2 very bad calls in a week. Are BBs watching the Chartists too Lol ?
BBs would have made the knockout punch today on the weak margin and contra players , but the plan was foiled when Ausgroup announced first share buyback 4m @ 54 cts before the opening bell this morning. This is to tell investors that they are not just talking , unlike the S-Chip CEOs ( ie huge cash pile, low PE, high NAV blah blah but no share buyback ). I am beginning to like the new jockey. Will just sit back and watch the drama unfold. My views only.
The drama continues. An Oz fund sold all its 33 m shares on 2nd/3rd Oct , which may explain why Ausgroup bought back 4m shares on 2nd Oct.? I am scratching my head re why the Oz fund can’t wait for few weeks or mths to sell at a higher price or wait for the shares to be listed in ASX ? As I don’t understand why, I sold out this morning and will review again when the picture gets clearer . Can’t be too greedy , though sad as I bought abt 6 mths ago. My views only.
The reason may be the Oz fund just took their profit of 80% ( not bad over 18 mths )? As no serious sell down after that news, I think the price should consolidate around the share buyback price of 54 cts until next catalyst ? Bought back for 2nd bite of cherry as I have a buffer profit of abt 40%. Contra players be careful as price can be volatile short term. Still betting on the new CEO to do a good job. My views only.
Penny – My brokers don’t really like me as I am not active trader and only long a few counters at a time, which can be boring, hence sometimes I trade ( but not contra ) speculative shares in small scale for excitement when market is hot. As I am mostly long on counters which I deem well run and/or undervalued , I am not afraid of syndicates pump n dump, but I am scared of insiders selling , esp if CEO dumps large chunks.
