In a trade there is always a buyer and a seller transacting at an agreed upon price. Logically the buyer wants to buy at the cheapest price possible and the seller wants to sell at the highest price he/she can get. When the two prices meet there is a trade. When the buyers are willing to buy a stock at whatever price the sellers Ask, it is a “seller” stock (seller market) and consequently the sp will increase. On the other hand when the sellers are ready to sell at whatever price the buyers Bid, it is a “buyer” stock (buyer market) and the sp will decline as a result.
I believe Largo is now at the lowest price range in its history as a producing mine. There is no mass exit but just the constant drip, drip, drip causing the price to fall in a slow but steady way. Judging from the low average daily volume, it seems to me like people are sitting on the sidelines in a “wait & see” situation at least until the stop-loss orders are triggered. In the past few years Largo’s market cap has fallen ~90% in a downward spiral. “Catching a falling knife” is a risky business. However, if someone really wants to take that risk then patience does help because the longer you wait the cheaper the sp. At least in the past 12 quarters LGO has always declined after the announcement / CC of the Q results. Will Q1-24 be any difference? Q1-24 results will be released around mid-May so the risk of LGO continuing to fall at least in the short term is a possibility to be considered.
DYODD