RE: Ups and downs26 May 2020 16:31
There is currently `an amount` of sellers at this level for several reasons.
1. The placees will be selling (some or all of their shares) for their profits after the 0.5p placing.
2. The share price consolidated sideways in a range between c1.2p -1.7p between late last summer and Jan this year before being dropped down to the 0.5p placing price, so those holding or buying within this timeframe will look at the recent rises to get out with a profit or breakeven, for their personal reasons.
3. Those private investors who bought in at the same time as the placing will be sitting on a handsome profit around 2p or above, so will consider it wise to sell at least some for a good profit.
The good news is...
1. The company is now well funded.
2. They have the new Chairman, Gerard Brandon, who is also the CEO at SKIN, and who seems to have been instrumental in the collaboration between the two companies.
3. A rich vein of positive news flow since the placing which has driven the share price higher.
4. The share price is in a rising trend since the placing.
5. The possibility of MWG playing a part in detecting Covid19, amoungst other contaminants, in wastewater worldwide, which if that develops could be massive.
So it seems that the current share price is being held back by some sellers at this level, but they won`t last forever, the placees can only sell once.....and with the ongoing expectations of positive news flow the sp tug of war will `give` at some point, the balance will tip in favour of upward momentum and the MM`s will have to re-rate.
Patience is key for new buyers, but I don`t think they will have to wait long before they are rewarded with a higher trading range.
Sign In
Follow the stocks
