RE:RE:RE:RE:RE:RE:RE:RE:RE:Greg Pollard Appointed (Interim) CFO of EguanaMaxima, TY for the factual responses. Even your negative spin is being presented with sound argument, so I refrain from the "B" word...
I think the company has charted a path to avoid or minimize the "sell on news" effect: 1) The rumours of major partners (Daimler-Benz) is huge IF PROVEN TRUE, but by letting it out without firm confirmation, playing coy, the SP has been wrung dry of those who perfer to trade on speculation. Good.
2) Now we have a majority of shareholders who are true believers. The potential for the news not to confirm is too high a risk for a long-term a gamble, so exiting at .30+ was the smart money for the speculators. Peope, like me are here with a gritty realistic balance between hope and skepticism.doubt in our analysis of risk:reward.
3) At. 26-.28 we are not betting the farm at .40/share even before the news hits.The negative risk factor (the risk of a confirmed failure to close a contract) has already been factored in to the maximum possible extent.
4) Of course a negative NR will cut the SP potentially quite hard,
but a positive NR should NOT have the same result. If the news is good,
it will hit... now... as if it was not forseen. So I would expect a hard and potentially-huge spike followed by lots of speculative flipping off the top... or if the numbers are good enough, the Sp may continue up like a Junior Gold from last Jan-Feb, with no real looking back until cresting somewhere in 3x-8x of our recent average SP.
4) For myself, I am unsure if I would sell even if the news is undeniably bad... and by "bad" I don't mean a boring same-old AFS.. that will be just a niggling dip on impatience... we've been there a long time since before I joined up... great product potential but a strange lack of sizzle. . . By "bad" I mean persuasive evidence that we have lost out on a large contract we had a decent change to close. Some will think me a fool to hold from .28 to... oh... .18?, but my net SP is .19 and I started buying at .08! That is, I see this company as still a strong contender for a decent share of the inevitable renewables boom. If the SP drops hard on bad news I will be scrambling to BUY into the lows.rather then sell on the way down.
Long as always, CYD
maxima57 wrote: 1969Enigma wrote: The share price has been managed within a very tight window now for almost 7 straight months and it remains at the close today within $0.05 of the pp way back at the end of June. Now what are the odds of that happening by chance???? Almost every ticker on the TSXV experiences a pull back on news. A phenomenon that I don't like but accept that it happens. Those who short stocks understand this and use it to their advantage.
Seven months and the prices still remain within $0.05? With all of the company’s potentials, do we not expect the prices to be in the $0.70 or higher by now? "Happening by chance or not" I’m frustrated not you?
With regard to the saying “buy the rumor, sell the news”, was there any rumor about the appointment of an interim CFO floating around before the NR? Isn’t the “German partner” story the big major key potential news people have been talking / speculating about?
In a nutshell the following is the basic about “buy the rumor, sell the news”:
“Buy the rumor, sell the news” is the phenomenon of stocks trading up into "big" (key word “BIG”) announcements, and then often selling off after the news release.
When people (especially short term investors) anticipate a big and positive potential news, they pile up into the stock thus pushing the prices higher and making the stock trend higher in days and sometime a few weeks right up to the news. In other words, the positive effect is built into the share price during the anticipation of the big news.
If the news turns out to be as good as expected, the stock may still sell off as people try to realize their profit. The sell-off would push the prices down.
If the news turns out to be below expectation then it not a good thing and investors bail thus pushing the prices down.
If the news turns out to be above expectation then investors continue to pile into the stock thus pushing the prices even higher.
Btw, does Warren Buffet invest in penny stocks on the casino exchange known as Venture?