PingPong14 Jan 2014 21:03
Hello PP, how are you doing?. Hope you had a good Christmas.
I've never really thought whether or not I am bullish on any share. Perhaps it is because I feel it may make me take my eye off the share with the market looking on waiting for that moment to drop the price. But yes, I suppose I am reasonably positive still. No, I haven't sold out of NET, my comment really was just s sigh of relief and appreciation for what had happened over the year. Nor have I top sliced, not having a great no. of shares in the first place.
Key for future movement will be the next trading statement which I would expect to be issued sometime during the week commencing 20 January or possibly the following week. I am not surprised at the retrace in the share price which is common to any share which has had a good run.
Looking at the 3 month share price graph and using a 9 day moving average the share has now fallen below the lower Bollinger Band from above the upper band. A share usually trades somewhere between the two with periods above the upper and periods below the lower. The bands move around, up and down depending on share price movement. There is an argument that when the share price falls below the upper band after being above it, it is a good time to sell because the share often falls to the lower band. The opposite argument is as valid, ie a share which rises above the lower band after being below it is a good time to buy because the share often rises to the upper band. However, this can take courage because it isn't a guarantee and opens one up to trading rather than investing. What will move the share price most of course is the fundamentals based on the latest news etc. Using the 6 month chart and the 20 day moving average and the 12 month chart and using the 50 day moving average shows a different picture. Regardless of the above, I only like investing in a company which shows an overall rising share price chart over a period of time, at least 3 months and preferably more; investing into strength never weakness. That can mean averaging up, never down.
I intend holding at present, but will be prepared to sell quickly should the story changes. I am not expecting to add to my holding unless something super positive turns up. There was nothing negative in the latest Chairmans comments. The next trading statement should give details as to Serengeti's contribution to revenue and profit.
If I find any news relating to NET which isn't in the form of a RNS I will post it on here.
Regards
CM
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