Voltalia Ord Shs VLTAF

Volta's emerging personality

[ALLEN4]

Every stock has a personality and if you are going to take a position you have to do your best to understand it. I have included the chart below because it has a nice volume overlay at the bottom. Coming out of the summer doldrums we have been creeping higher on some decent increasing volume, presumably due to some growing awareness of Volta as an investment vehicle by fund managers in individual investors. But there can be no question that the most exciting moves for Volta have been news driven and have occurred on huge volume days, where we have seen 8 and 9 million shares traded in one day. There are over 132 million shares outstanding. You cannot make sense of the chart in price changes without reference to volume. What I gather from studying the chart, both price and volume, is that Volta is a company which is still being discovered by market participants. The huge volume days probably represent investors/speculators new to the story. Huge volume, meaning several millions of share, when it occurs has resulted in signficant increases in the share price, meaning that owners of the shares know they have a good thing and will not sell it without extracting a significant premium. The new buyers that come in to increase the share price significantly are doing so following news; what seems to be unusual to some degree for this stock is that there is not a raft of buyers always waiting to purchase the shares anytime there is a seller willing to sell at a reduced price. In other words the Volta buyers which will take us to new heights will continue to be sudden sporadic buyers who discover us following a significant news event. However, that changed to some degree as we emerged from the summer doldrums, and it was very positive for us that we generally increased our average daily volume and traded along with other leaders in a sector wide movement higher coming into the seasonally strong season for gold.

https://ca.finance.yahoo.com/charts?s=VTR.TO#chart2:symbol=vtr.to;range=1y;indicator=sma(30)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined