First Global Data Ltd FGBDF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:What I find strange

[fruiscante1]

Hello all, just thought I would chime in here, as I see a lot of discussion about the recent share price, but ho discussion of what I see as the main reason. 

This company has been trading near the 52 week low, despite the financials heading in the right direction. In my mind this is tax loss selling, pure and simple. ALmost everyone who bought this company in the last year is down. During the month of December, people have been selling thier losers, and either wating a month to buy back (must wait a month to be able to claim the gain). This happens to many stocks that are in this situation, and is often followed by a bounce in January. I've been watching the HUGE support at .22, and slowly accumulating over this time. 

In Canada and the USA, tax loss selling ends on Tuesday December 27. The bottom for this stock may happen on that day, if there is a large amount of selling still to come - where there are HUGE bids stacked in the low 20s to scoop us the shares. On the other hand, we may have already bottomed, as we are seeing the shares start to move up a bit. I take this to be people like me trying to get the lowest price, but not miss out on loading up before the end of tax loss selling.

This theory also may explain that lack of new releases in December. Releasing good news this month may not have any affect, as it would be met with more tax loss selling anyway. Might as well save these releases for January, when this start to look posisitve again.

Food for thought - good luck to all in the new year!