Animated footprints....1 Dec 2008 16:38
Up until today at 10.12am there had been one page of footprints, most flagged up the fact that ADSL shares were under offer speculation consideration. From 10.12am there has been 21 pages full of footprints and to be honest it proves that momentum buying draws in the crowd. Just like hangings used to, but I am sure quite a few who bought from 10am today have been hung out to dry. This stock was heavily bought up in Nov leaving very few of the remaining issued shares available, so today's feeding/buying frenzy proved the well held belief that few shares available when subject to momentum buying has a disproportionate effect on the share price. Markets are suggesting that quite a few buyers are suffering losses and or potential losses as a result of buying into a stock without first of all researching into why and what stock they wre buying into. No doubt tomorrow a fresh herd will pick up where others left off. Canny investors who bought in at 12p/share this morning and sold out at 40p/share will now control the market in those fewer shares that are available. This offer never had a cash alternative, so the effect of today's market correction puts it back into focus, cash offers are king share exchanges are harmfull to your wealth.