Painted Pony Pete Ltd PDPYF

Re: Tax loss selling in BIR and PONY

[fergus2]

I posted this on the Birchcliff board but it has relevance here.

The tax loss selling in BIR is largely over, least wise, as far as new lows being made or as something that seriously impacts the share price. In some respects, the Schulich departure, coming as it was in October, moved the timetable up.

 Also, that big one day rise for PONY (20%) was a watershed moment. Some snuffleupagus sucked up 20 million shares that day; we haven't seen a return to those lows in PONY since then, and I sincerely doubt we will.

Share prices in both companies went way too low prior to tax loss season. If that wasn’t bed rock then excuse me, I don’t know the meaning of the term. But assuming it was indeed bedrock, it mitigates the impact of tax loss selling. Connoisseur buyers know when cheap is cheap, but the dreamers don’t, and they miss the train. Markets and magic have one thing in common; when the “turn” comes you don’t want to miss it!  Since their lows, Birchcliff and PONY have developed a buoyancy of their own and, I point out, with the help of superb volumes. Why, one could say, “they’re popping up like corks.”
 
I said in a post some time ago that I didn't think Bir would recover until PONY did. Now, I’m certain they will both rise in tandem.

To be a successful now, buyers will have to set their nets around higher prices.