The Disadvantage of Holding The Smaller Micro-Cap Stock Today Abcourt Mines is a penny stock.
This will not always be the case.
As happens frequently, a single trader may step in at the last hour of trading to drive the direction of the share price of a penny stock, up or down. This is an attempt at manipulation. It does not reflect a general trend.
The move may be designed with selfish intent!
But a study of the directional move by volume gives a better indication of where the stock price is heading! A one day move is not a substantial indication of a longer term direction but it does offer a clue.
Today this technical indicator gave a positive signal, once again. The share price may be about to move higher. If not, another investor, has at the very least, made another concrete positive statement with his wallet!
A major block of shares (176 K) was purchased at 17 cents, but later near the close, a price manipulator drove the price back down to 16.5 with selfish intent.
A much smaller block (10 K) of shares was sold at .165 cents. On some days, the same trick may be used with a block of only 1000 shares. This kind of trader must be frustrated because he can't keep the lid on this heating cauldron of stock, for very much longer.
He thinks that he deserves to pay less, than the rest of us!
With the obvious profit potential growing, more accumulation is happening and now!
When one grasps that the fundamentals and technicals remain so positive, these kind temporary setbacks, should still, let someone sleep, well at night!
We know where the price will ultimately move!
Large blocks of accumulations do indicate that deeper pocketed investors are serious about getting more involved in the play.
Remember that it wasn't too long ago that Abcourt's shares traded at 24 cents.
From a longer term perspective, that sell-off was largely unwarranted.
Investors must think longer term. Their objectives can't happen overnight!
Companies are run by ordinary people who are not magicians.
It takes time for a company to grow,
even on a frustrating day, like this one.
Once Abcourt Mines becomes a much larger capitalized stock
the late day selling action, by one manipulative trader,
will no longer drive the price direction of the daily trade.
Try to remain positive!
All the best! Java