RE: Tomorrow22 Nov 2018 20:14
"...every tick of the share price exactly values a share to perfection."
Ronin1, all fair enough. And now wait a minute: Who said anything about true or even fair company value???
While the Sp, your lifelong friend, will not let you down and always tell you the truth, this does not necessarily mean the true value of a PLC. Careful!
Lets not confuse the truth (unmasked market reality) with true company value, build on many different factors, including peoples sentiment and visionary future outlooks (things that are not materialized yet).
So instead of saying "truth", its best to say the Sp always shows the current reality.
While a large number of CEOs will give you smoke and mirrors (and even blatant lies), the share price will show you only what is real and what has matetialized.
KAZ Minerals...
The market with its main stakeholders and institutional players did NOT believe in the brave and visionary russian movement of this company. And the Sp quickly reflectee that.
Thats why we are not 1000, but 500p. This my friend is the unmasked truth and reality. Add on top the coincidental bad timing this year, china war and copper decline.
With KAZ one could go as far and claim that leading insiders saw behind the scenes of the russian deal in May 2018. They spread the bad news to ii's, who then immediately jumped ship from 1000, 900 and 800p.
In the meantime thousands of PIs were scratching their head, looking for answers why the hekk the Sp fell from a cliff.
Do you prefer to find out what caused a price crash. Or do you prefer to avoid a price crash altogether? If its the second, then listen to your friend: The share price. If the bearish trigger is breached, jump. If the bullish line is climbed, back in.
KAZ had several red flags, starting from May 2018, with a suddenly declining Sp, so that even people with no insider knowledge could have easily followed it.