The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
"Anyway, as the charts seem to tell you everything, will the SP be higher or lower by Friday? "
I don't care about price action on a daily basis when there is no ' news. ' It's when volume increases that the real action happens. Right now there is support at between 2.8p to 3p - like I said, in periods of low volume the MMs are happy to take it back down to deeply entrenched support levels. If there is a positive RNS, then there will be another spike to between 8p to 10p very likely, so that will be the opportunity to exit that you are now waiting for....
Doc83 is a very annoying person I have to agree WOS.
I don't really mind you - some of your input is quite useful. I don't think you deserve the flak that you get on here.
As tactful as ever I see Doc83. FYI a ' weakholder ' is someone who is locked in, as they bought in below the current price level, and doesn't want to exit with a loss. Usually they've been locked in for quite a long period of time. So they hold on until they are no longer underwater, and then on the next spike driven news they exit as fast as they can with a great sense of relief - maybe if they are lucky with a bit of profit. This is a big supply factor when the price suddenly spikes - as it has done on every single MATD RNS release to date. Add to that the high level of supply when the traders make their exit with a quick profit, then you can see why the price can jack-knife very hard after the spike.
In fact you have already announced on here that you will want to exit for good on the next move up - so your comment merely shows that you don't understand what I wrote. You have already said that you know nothing about charts, and it's obvious to me that you have no idea at all about how price action happens with these kind of volatile penny stocks. The pros behind their trading desks would just smile at your total lack of understanding of the basics such as support and resistance levels etc and other technical indicators which they spend every day studying for any stocks which interest them.
To date, the price action with MATD has nearly all been driven by short terms traders, with ' investors ' like you scratching their heads as to why the highly volatile price behaves the way that it does....If you did look back at charts you would clearly see that in the months after an RNS, the price always drifts lower to very well defined support levels on low volume. This last time since the late Dec RNS has been no different at all.
BP - personally I don't believe for one minute that there will be a smooth upward trend if the next RNS confirms that all is sorted. These kind of small cap penny shares just don't behave like that, nor do they do this on the Nasdaq.
Whatever the next RNS says, expect huge price volatility to continue. If it's good news, then expect algos to be triggered, traders to be alerted when they see how much % MATD is up on the day, and then watch them pile out when they have made their quick gain. We've seen this happen time and time again on an RNS release - a large spike up, and then back down again just as dramatically when the trading desks sell en masse, or when long term weakholders (like Doc ) decide to exit with some profit.
On the other hand you can get shorters ( supposedly like Professional ) who might be leveraged, and are ' short squeezed ' with margin calls, meaning that they have to buy back quickly, which can then send the price spiking even higher. Often they place their short trades near previous resistance levels, which are very well defined with MATD. Either way, it all results in volatility. The problem is that some people think that buying a penny stock is like buying Shell or some other blue chip. Having said that, anybody who bought Rolls Royce shares a in late 2022 would already have a 500% multi-bagger, without ever having to worry about Mongolian land laws.
"shooting up sometimes by several 100 % in just a few hours, or even minutes." I meant. I don't like proof reading on Sunday mornings !
I certainly wouldn't like to be short on a penny share, watching with a sinking feeling as it goes against me, and then getting margin calls from my broker...That's pressure. No margin calls if you are not leveraging either way, long or short, with say CFDs.
@Cybertron.
Regarding ' Professional ' I follow Nasdaq small cap stocks very closely these days, and watch the volatility in real time when news breaks every single day with numerous Nasdaq tech stocks. They are incredibly volatile - shooting up sometimes by several 100 % in just a few hours more even minutes. Sometimes they keep going up, sometimes they jack-knife back down heavily after the rise It's hard to know. What you do know is that they are highly volatile.
I head that some shorters in Nasdaq stocks have wiped themselves out completely when the price action went against them. Even with a stop, the slippage can be incredibly high if the prices is moving fast. At least going long you don't have unlimited risk, which you do going short. Nobody in their right mind would be shorting highly volatile penny shares like MATD - what happens if you are in short at 5p with £50,000 worth of shares, and it suddenly flies up to 30p in a few days?
Stas20 - if you think that MATD is a waste of time, then why waste your time on here talking about it ? It sounds like you are just a schadenfreude merchant who gets pleasure from other people's discomfort. Usually the liberal peppering of posts with LOLs is a pretty sure sign of this kind of person.
Why not devote your time to something that will make you money - you are obviously an expert investor or trader....?
Laguele - you are not factoring in the intended JV with DQE, the whole point of which is to be able to roll out Heron as quickly as possible, and with minimal cost to MATD. The 14th February 2023 RNS stated ;
" Negotiations with DQE Drilling ("DQE"), the main provider of drilling services in Mongolia, have been completed and the contract for a multi-well development drilling programme is with DQE's head office for review and approval after which we plan to seek the approval of MRPAM. "
There was just over a 2.5 month gap between the last two RNS releases. So far it's now just over 2 months since the last RNS was released. So I'm sure why there has been so much talk about ' delays.' If 4 months had elapsed then maybe bit might be more reasonable to keep going on about delays.
Laguele : have you read the report by Progressive Equity Research from March 2023 ? This was written before the land was designated by central government as special purpose, but before Velicoiraptor was found to be a duster. Heron was valued at 18.5p per share.
Avo333 - if you don't know the difference yet between 'their ' and ' there ' then why should I listen to anything you say about MATD ?
Finwittrader : take a look at charts going back years. MATD has always moved around with huge % gains and losses in a very short time, and bouncing off support and resistance levels frequently. It's called a volatile stock, which is what you get with a very small cap with few shares in circulation. It's not all just about fundamentals.
Hamm : a few weeks ago you were urging everybody to pile in at about 4P as in your words ' there is no risk .'
I wonder how anybody who listened to you feels right now.... ? I've seen you change your tune several times on this board. At least WOS is consistent.
Pilsbury7 : WOS will be talking about technical analysis, and specifically the RSI indicator( Relative Strength Indicator ) If you do a search for a ' MATD barchart ' on various sites, then you can play around with a chart - change the bars to candles, add various indicators, put in trend lines, support and resistance lines etc. MATD has been a trader's dream for many years now - anybody buying and selling based on just support and resistance levels could have made a lot of money with the numerous spikes, followed by a plunge to support lines.
Right now we are still at the bottom support of an upward trend, which started with the low of 2.5 in mid November. If it breaks down to the next support of 2.8p from the 15th Dec then the upward trend will be broken, and the next support after that would be the mid November support of 2.5p. That support of 2.5p has been touched and held several times in the last few years - so it's a very strong level of support.
Aeschylus : The exact wording was ' but we are pushing and expect this to go through soon. ' However it was not referring to the other three stages which I mentioned - just to the transfer of the money from the Ministry of Finance. For all we know this may already have happened.
No other reference is made to probable timescales in the rest of the RNS, so the numerous posts on here saying that there have been delays is just subjective opinion with no basis in fact. Let's face it, if the share price was still 4.5p people wouldn't be panicking.
Hamm - 2 or 3 weeks ago weren't you urging people to buy at about 4p because in your words ' there is no risk ? '
@Aeschylus
Why do you insist that there is a delay ? The only reference to timescales in the last RNS was the word ' soon ' however if you read it again this comment specifically related to the transfer of the funds from the Ministry of Finance, and not to the other 3 stages which were stated in the RNS, which are ;
1) The signing off by the Provincial Governor
2) The issuance of the special permit to MMHI.
3) The signing of the Land Contract between Matad District and MATD.
So speculation that the Ministry of Finance have not yet transferred the funds is not based on any objective facts. It's very likely that MATD will not release the next RNS until all 4 of these stages are completed, and 2 months for all this to be done is probably not even realistic in terms of the sclerotic Mongolian bureaucracy...
WOS - as you wont say how many shares you own, then what's your average ? And when did you start buying ?
Professional : he probably works on a trading desk for one of the MMs...And speaks perfect King's English.
As a matter of fact, how have you got on short term trading MATD ? I think you said that's what you do.
"When my Dividend payment income stream come in all will be clear with my strategy - no stress with spending life trading in front of screen. That is good enough for me "
All on the assumption of course that this LP will finally good, even though right now nobody can guarantee it. I hope the next RNS will be 100% positive, but let's face it, the last few years have been a total shambles as regards MATD.
WOS - If you don't mind me asking, how many MATD shares do you actually own ? You give the impression that you're always adding.
All I can say is that to date fundamental analysis has been a bit of a disaster for MATD ' investors ' whereas someone trading it very short term using technical analysis would have achieved the equivalent of a multi multi bagger to date. And with very little stress and pressure - and with no need to be rooted to this board every single day....