Firering Strategic Minerals: From explorer to producer. Watch the video here.
What's going on with HE1 right now just shows the danger of jumping blindly into FOMO sudden spikes - somebody who bought at the peak of the spike will be sitting on nearly a 50% loss right now...And a placing may be on the cards soon for them.
Mster82 ; 2 out of 15 isn't too much of a worry, and anyway, the case the governor has against the two wells on the overlapped land is incredibly flimsy. I am sure that his objection will be cast aside in the course of time. Therefore the Special Purpose Certification isn't massively important anyway - I am sure they will get it though.
We just need the District planning paperwork signed and then we're in business.
With the largish % increase showing on today's trader scanners, the volume should start to pick up here as both traders and investors realise that something is going on.
Plus the algo driven computers on the trading desks will probably have picked up the significant % gain today, and will hopefully be starting to make decisions accordingly. Hopefully any increase in volume in the next few days will involve both traders but also investors who are looking at fundamentals rather than just chartist technical indicators. We will see.
If there is another positive RNS however, there will be a huge increase in intraday trading regardless. Just be wary of a large spike followed by a pullback if it does start to trend upwards - don't jump on to a FOMO spike. Even in an upward trend the pullbacks can be very sharp - Helium One I notice had nearly a 40% pullback in just a few days after it hit its highs. It seems to have stabilised now I notice.
Thanks WOS ; as a matter of interest, what are your predictions for the start of possible dividends assuming that production does start on time this year ?
I'm not sure whether Petrovis are looking for capital growth on their shares, or have more of an eye on possible dividends. Surely a big uplift on the share price with give them the ROI which they are seeking ? I guess if they are planning on holding on to their share investment hopefully for many years to come, then dividends are important to them.
Thornogson : I've just had a look at Helium One, and it's certainly had an impressive price move. My point about spikes still applies though, as I notice that it rose to 2.85p on Feb 5th and by 14th Feb it had fallen back to 1.85p - that's a 37% fall in the space of just over a week... That wouldn't be have been a nice experience for those who bought right at the top of the spike, just as a load of people/ computers closed their positions, thereby flooding the market with supply.
AIM stocks with a small number of shares are extremely volatile, and the algo computer driven short term trading accentuates this fact. A computer doesn't know who MATD and its shareholders are, and it doesn't feel fear or greed...
Thornogson -as Pro has just mentioned, what I am saying is that the algo buying on an intraday basis when there is ' news ' needs to be replaced by investor buying by people who are interested in the long-term fundamentals.
If you look back as far as a chart will go, you will see a series of spikes driven by a news release. That's because to date the spike buying has been mainly driven by intraday trading. Intra-day trading also involves shorting.
Plus when volume levels are very low it allows the MMs to play around with the price more, including creating big spreads.
Hopefully if the green light is given then a different type of buyer will be alerted to what is happening here. However, given that relatively few shares are in circulation still, the price action IMO will remain volatile - as imbalances between supply and demand can happen very quickly if there are relatively few shares to be bought or sold. On Nasdaq, stocks with a small float can be incredibly volatile - that's why many day traders specifically target them to day trade.
Some of the comments on here make me imagine a guy standing exasperated by the side of his car wondering why it isn't going very far. He has no idea that the fuel tank is empty...
The thing which drives a share price is VOLUME. If there ain't any volume, then the share price is going nowhere. Volume is activity ie how many shares are changing hands, whether it be mainly selling or buying, or a fairly even balance of both. On Friday when the RNS came out the volume was 18.5m.On Monday it was 3.5m and yesterday it was 2.25m.
Why is that ? Well, when the RNS came out on Friday, the algo driven computers in the trading desks all kicked in. They are programmed to pick up and even analyse ' news. ' That's where most of the volume came from. And when they profits had been made then they closed their positions - so the selling also partly accounts for the very high volume on Friday. There was an abnormally high amount of both buying and selling last Friday.
For the MATD share price to be more than just a series of very short lived spikes induced by news, it needs a different type of buyer to come in to drive the volume, rather than just computer driven intraday trading which merely aims to make a big % gain in a few minutes and then closes the position.
Doc83 ;
"They ( sic) may be some kind of algo trading going on " you said.
In fact, according to Select USA, in the US and other developed financial markets, an estimated 60-75 % of overall trading volume in equity markets is algorithmic, and according to Wiki ; " 92% of of trading in the Forex market was performed by trading algorithms rather than humans."
Wiki also says ;
"The algorithms do not simply trade on simple news stories but also interpret more difficult to understand news. Some firms are also attempting to automatically assign sentiment (deciding if the news is good or bad) to news stories so that automated trading can work directly on the news story."
"hold half your pot and trade half, you are in for any potential rises and have funds to average down/ increase you number of shares on any dips. best of both worlds IMHO"
Yes, I agree with what you wrote Horult. I had already decided to do pretty well that. Let's say that we get another RNS soon announcing that the land access papers have been signed. There will likely be another spike - but this time probably more to previous resistance levels of 8 to 10p. I then intend to sell at least a third of my holding, and after that take it from there. Bank something tangible, rather than keeping a paper profit. There may be another raise straight after anyway.
There's no way if that happens that there will be some kind of smooth upward trending price action as many on here are hoping for. The algos will kick in again on the news, volumes will soar, and then a flood of sell orders will come in once the computers decide to sell and bank their big % gains. So the price action will likely be more volatile than ever.
Horult : with hindsight I would have done exactly the same. Last May for example I could have pocketed nearly a 100% gain when it spiked to about 8p, but I stupidly decided to hold. I could have made 5 or 6 decent profits on the various spikes since late 2019. Every spike has generally been caused by an RNS release. Without high volume very little happens with this share - normal daily volume is extremely low.
Badprophet : MATD is basically a very thinly traded stock with very little volume. If an RNS is released, then it gets a sudden massive injection in the arm as a load of trading desk computers are alerted by the news and subsequent higher volume. Once the sugar rush is over and the trades have been closed, then the volume levels return to normal.
Until MATD actually becomes income generating, then this pattern wont change. AIM is mainly a market for short term trading, due to the possibility of quick and very high % gains. On Friday trading desks might have taken 20 to 30 % gains in a day had they jumped in fast enough - that's why the decisions are mainly made by computers.
Badprophet ; whether the news is considered ' good ' or ' bad ' is immediately shown by the price action, so for example in the Nasdaq pre-market or full market open the technical indicators will show immediately how the news release is being perceived by the market. Then the algos kick in accordingly. The trigger is ' news ' but the subsequent action is all down to technical indicators which the algos are programmed to work with and act on.
Today there is very low volume on MATD, because short term trading will have moved to other stocks with the right technical indicators which may well have been triggered by some kind of ' news. ' It doesn't always require ' news ' however - a support or resistance level may have triggered trading activity.
Master82 - see my post below about what really drivers short term price action and the sudden spikes followed by sharp pullbacks. It's nothing to do with the way that the RNS was written.
Re short term price movements, I'm not sure how much people realise that most trading these days is algo driven, in other words computers make trading decisions according to the algos with which they have been programmed. Algos are a series of stages, so if x happens then you need to do Y etc.
I watch small cap Nasdaq stocks most days which are high % gainers on the day with very high volume because news to do with that company has just been released. When the news comes out then you often see in the charts several huge green candles with very high volume when the market opens. This is because the computers have registered the news, and are programmed to jump in immediately. So volume ( shares changing hands ) goes through the roof for a short while. Then when certain levels have been reached ( resistance levels etc ) or certain % gains made, the algos trigger sell orders en masse. So the spike is over, and the price levels fall back quite sharply with so much sudden supply flooding the market.
The same kind of thing happens with UK shares. If you take last Friday, when the news hit, half hour volume went up from about 0.2 m soon after the market opened, to 4.85m when the RNS was released, and the algos had therefore just kicked in. By 3pm on Friday the volume had fallen back to around 0.2m. Total volume on Friday was 18.5m and yesterday it was 3.7m. Today so far it's about 0.5m.
Trying to understand short term price action without paying any attention to volume is a bit like trying to fly a plane without instruments. Of course yesterday and today you will hear people saying ' oh, the market isn't convinced, as there are still hitches with the Special Purpose Certification etc.' The reality though is that the sharp spikes followed by sharp pullbacks are caused by algo driven short term trading/scalping which kick in typically when there is some kind of news, so that a particular share registers on that day as a high % gainer on abnormally high volume.
Pro ; if you don't know the difference yet between ' were ' and ' where ' then I'm unlikely to ever bother listening to what you say about stock market investment or trading. You can't even put the cap lock on and off without frequent errors when you write.
Pro - you are as much a professional trader as I am a professional flower arranger.
Pro ; according to a chart I have just looked at, peak half hour volume on Friday was 4.8m, whereas today the peak volume which was at around 8.30am was 1.42m, with most of the half hour volume today being around the 0.15m mark.
Don't you know that when the volume is very low the share price is taken lower by the MMs ?
Pro ; to say that you are a trader you don't seem to know much about volume ( or activity )
Pro ; so go ahead and quote from the Progressive document exactly where it says that a delay in the SPC will hold up PM from going ahead with operations.
It's obvious to anyone with common sense who has read the 22/09/22 RNS, in conjunction with the last RNS that all that is now needed is the signing of the land use agreement - which is currently being prepared by the District authorities.
Wos - I agree totally. I don't know why some are still saying that the SPC is necessary. It was always the plan B option when PM was being frustrated at the local level, as the wording of that 22nd Sept 2022 proves.