Member Info for investor33

BP ; if you look back on your previous posts, you clearly enjoy the schadenfreude caused by the discomfort of the LTHs if the share price has dipped even just slightly on a given day. You don't consider their feelings, and it's though you are willing them to lose money presumably in order to make you feel better about losing money on Matd in the past.

From what you have previously said, it sounds like you might have jumped onto an algo driven spike on ' news ' and then sold after it plunged following the spike. If this is what actually happened to you then IMO that's more down to not understanding how these low volume, low cap stocks on Aim work. The share price has been dominated by algo HFT for years now - bouncing off support and resistance levels. Instead though, you just seem to have a pent up resentment towards the company, and therefore to its shareholders as well.

BP ; depends which algo computer generated spike you measure from. Last May it went up to 8p - but all that shows is that HFT produces heavy volume on a news catalyst. Anyway, I was referring to your day by day carping and glee if on tiny volume the share price has dipped slightly. And obviously with a penny share even on very small volume the % move is magnified, even when very few shares are changing hands on a given day.

If the next RNS is favourable, then volume will suddenly go through the roof on that day, and the share price will respond accordingly.

Badprophet ; it's a total waste of time talking about tiny movements in the share price when there is very little volume. What matters is what the share price does next time there is heavy volume.

You may as well study, obsess and comment about a car which can only move a few meters because the fuel tank is virtually empty. What the car's performance will be like will depend on the next time that the tank is filled up.

If you don't understand ABC basics like this then you are in the wrong game.

Professional ; in the near future I intend to intraday trade Nasdaq stocks with high relative volume on a given day, caused by a new release. It's one of the most popular forms of day trading out there. Nasdaq is a million times better than AIM.

I'm waiting for MATD to reach its true value if and when production starts - but I don't intend to do anymore AIM long term investment - it's actually a lot more risky than intraday trading Nasdaq stocks with small floats and high relative volume when news hits. Algo trading is set up to intraday trade when news releases happen for a very good reason - whether the exchange is Aim or Nasdaq.

I may also swing trade some Nasdaq stocks, but otherwise, apart from maybe continuing to hold some high yield dividend stocks such as Legal and General and M&G, I intend to wave goodbye to the LSE and Aim. There's currently a mass flight of funds out of the LSE happening over here anyway due to low valuations and a lack of liquidity, and I think that trend will accelerate. Investors are increasingly pulling their funds out of UK equity funds. Look at Arm or Tui - companies are either delisting over here, or choosing to have their IPOs in Europe or New York.

Fevertree ; Once an RNS is released, the trading desk algos analyse it, and if it seems positive they will jump in before human beings are capable of doing this. Hence the relative volume figures on the day of the release shoot up. There was about 10 times more volume on the day of the last RNS release compared to say yesterday.

The only problem is that when the algo computers decide to make their quick profits and so close their positions, a large wave of supply suddenly hits the market. So to get a long term trend up we need more than mainly computers to be driving the demand side.

Fevertree ; the answer is that some people on here have no idea how these types of low volume stocks work. They have some vague idea in their heads that excitement grows between an RNS, and somehow lots of buyers are jumping in as anticipation grows. The reality is that most days between an RNS are on very low volume, and nothing much happens. These kinds of people never look at volume figures - some could probably not even explain what volume is.

Pro - I heard a story from an American day trader about what HKD did on Nasdaq recently.

It went from $20 to $2,500 in a single day on a news catalyst. So anybody shorting just 1,000 shares at $20 a share would have ended the day $2,500,000 in the red in just that single trading day....

That's why people shorting small cap stocks with few shares in circulation are taking an almighty risk if there is a news catalyst...

Sorry - I forgot to convert to a daily chart - the default is intraday on Barchart. dot.com. So volume yesterday was actually 1.87m which would equate at today's ask price to about £67,000 of shares changing hands, with yesterday's volume bar being red - meaning that the volume was more bearish.

When the last RNS came out the volume was 18.35m, which at today's ask would have equated to about £660,000 worth of shares trading hands - both buys and sells, but with the green volume bar on that day being green and therefore bullish.

Volume is back to where it tends to be without a news catalyst. Yesterday it was 0.24m worth of shares changing hands. At the current ask that that would equate to about £8,000 worth of shares changing hands, and some of that total will be sells.

Shares like this always need a news catalyst to create a volume level to make it move in either direction. And the computer algos are set up to analyse news when it comes out, and to act immediately - far quicker than a humna being.

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.