my suggestion of selling as the price rises is for people who bought too much. to reduce the risk exposure until the amount remaining is enough to make healthy profits on.
7th and 8th the price was rising really steeply, then 11th 12th rising less steeply, and today 13th the price initially rising very fast and then stalling.
I think this increasing stalling could be some stabilisation manipulation, probably the market wants the price to rocket right away to 6 and beyond, but its being held down.
with other case studies they seem to let the price move freely between 2 bounds,
I think some of the big buying has cash flow constraints, that eg say they move 10 million quid, but the money takes 2 weeks to get there. as the money runs out, the price starts to stall, and then starts to descend. 2 weeks later another 10 million arrives, and the price rockets again etc. the stock market itself probably has stabilisation constraints,
@Charlie156 the interims appear to be 19th Nov. maybe it will rocket before then? and then correct after the interims?
if and when the price descends, if it rebounds above 400 I may buy 300 quid as an insurance against misjudging.
if I bought 72 shares at 4.1with brokerage of 6, that would be 302.68. if the price reached 13.47, those shares would sell for 963.84, profit 661.16
but I would wait for any further trades, after the scottish referendum I will use the prevailing prices. but until then I am keeping to my hypotheses.
my plan is to place up to 4 trades of 300 quid, the first trade could be an insurance,
its tempting to say put 5000 quid, but I am trying to follow strict principles. that way the trades follow the principles, and I experiment with the principles rather than with the specific trades.
because RMG has descended such a huge amount, its probably immune to a market crash.
there is still the mystery of the lack of fund trades on the RNS, the last RNS fund trade was 20th Jan 2014 when "The Children's Investment Fund Management (UK) LLP" reduced their holding from 50.4 million shares (5.04%) to 45.8 million (4.58%) (move the decimal point to convert to percent!)
that's a really obscure fund with a really large holding, so I wonder why no famous funds with large holdings?
the Woodford fund has 36 million quid on RMG, which is about 0.83% of RMG, probably too low to register on the RNS radar. I wonder if Buffett will buy any RMG shares? or does he only do US shares?
BEWARE that on 22nd May the price opened at 555 and closed at 519, losing -6.5% in one day.
SAYE will have the affects vise versa,,,,It will put the demand high with lower prices. No big investors like giving away the shares 20% less the market value,,,, If the price is fixed this time all the employees are getting already reduced price on top of 20%. There will be more interest now than the price levels of 600p. So the price could go up than come down at least early September.
Before I knew about SAYE I was convinced that RMG would progress conservatively to 450 by the autumn and I seem to remember stating that here. But SAYE changes things considerably. We may have reached the optimum number (430-435) as far as the company is concerned and also importantly the government, which retains a big stake. In my judgement, If the SAYE price begins with a 3 then they will be satisfied. I judge SAYE to be extremely good news for PIs and this time next year RMG will be at a much higher level in every respect. Richard makes some good points. Anyway George, in the long haul, you will not be losing money at these levels. I am, though, thinking about selling a few. Interesting times.
I think you miss the plot,, Its not a mining share or AIM share to loose a lot further,,, Look at the basics of the company,, the asserts RMG got,,, this business will never go bankrupt,,,, But the only pressure here is the political pressure and the unions pressure. Unions pressure can be turn to good,, because they are also the share holders. I bought this around 422p, say with tax and costs may be 425p. Now the share price is 435p. Now I am on the safe side,,, Well I bought it a few days early before it reach 400p mark. But it recovered... I am not saying this will reach 600p near future,,, but your investment will be on a safe place, where you could sit back and relax,,,, For me the law levels are tested,,, It won't go further down,,,, If you don't buy now next month you will be looking to buy around 450p.
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