There's virtually no volume and the smallest trade moves this in either direction. If people confidently topped up then it would cause a rise that would attract others and drive a further rise but if they wait for the price to drop then that's surely exactly what it will do and cause others to also sell???
This looks poised for another big rise but it needs a display of confidence to get it going... a bit of blue at this time of day and who knows where it could close!!!
GLA
People wait for it to go above 8p to try and get sub 8p entry,
then they wait for it to break 9p for sub-9p entry etc
Underlying the daily volatility this has been steadily rising for the best part of a week now and 10p looks inevitable if not today then early next week. No doubt people will be waiting on the sidelines to get sub-10p once it is well & truly broken!
Anyone for sub-30p entry while you've got the chance???
lol
Steadygrowth
I’m not saying it can’t or won’t go lower but risk/reward is not there.
While I appreciate shorting is not for everyone and very unpopular with some, if someone were to take out a short at this level and it then falls to the underlying support (just over 3p) that would result in around 70% profit... the risk is an unexpected sharp rise but that seems unlikely looking at recent trading data and any reversal should be easily identifiable and allow a comfortable exit.
I'm not advocating shorting but it is perhaps easy to see why people do it and understandable why they might not close at this point in time if they already hold such a position???
Very best regards & good luck with your trading.
Haddad79
How much more down can it go from here huh??
Was 0.18p less than 2 years ago, but that would be a 70% drop so can't imagine that!
You seem to be obsessed with the idea of shorters closing their position but if there were an uptrend you, or anyone else in a long position, wouldn't dream of exiting prematurely.
Equally absurd is the idea that this will continue to fall indefinitely. Should it continue in the firmly established downtrend to the low 3s there should be robust support at 3.1p which should effectively provide a 'floor'.
Anybody taking a short position is simply using freely available data to identify the current direction of the market and then taking a position with, rather than against that trend. Even at this stage there is considerable money to be made should it fall to the identified support...
http://www.curvit.co.uk/marketdata/short/092018evrhweekly.jpg
GLA
Arriving at true value sometimes seems difficult, particularly with AIM listed companies, however comparisons with the likes of GGP seem a strange way to arrive at a valuation which should surely be based solely on the likely profitability of the specific assets in question???.
It's still not clear why Newmont didn't buy OMI outright if it was so undervalued at 2p... They've probably got a better idea than OMI themselves what it's potentially worth and yet they chose to take only a cautious 20% stake at this stage???
Perhaps the price they were willing to pay for that 20% gives a clue as to their own considered valuation which will of course have factored in the likely future potential???
My guess is as good as yours???
GLA
Why would shorters close early when market data suggests such a long drop from here to meaningful support?
http://www.curvit.co.uk/marketdata/short/092018evrhweekly.jpg
There's no denying the Newmont deal is very significant but the value of OMI increased 5-fold in just a few days to more than reflect this???
If OMI was genuinely undervalued a company in Newmont's position surely wouldn't mess around - they'd simply buy it outright???
There's no predicting SP movement and this could certainly move fast, but with 6p now closer than 10p and a downwards trend firmly established???
More questions than answers imho, but the enthusiasm here is obvious & I wish you all the very best of luck!
ATB
Seems likely that FRR have defaulted on at least the August payment which will have sent a clear message to YA that they're in trouble. As they are entitled to shares in the event of a missed payment shorting seems the logical thing to do. While it may not be popular with FRR or its shareholders, without a specific clause in the contract to prevent.this they are perfectly within their rights to do so. By crying foul play and threatening litigation FRR seem to be revealing the weakness of their position to negotiate amicably and this announcement looks like an attempted distraction that smacks of desperation. If they do take the litigation route they will struggle to finance it and, as YA have much deeper pockets, will more than likely lose a potentially long drawn out battle. Sorry to say but imho things do not look good for FRR at this point in time.
"in lieu of respective cash payment for the month of August"
Doesn't that say they weren't paid???
Same for September
By recalling shorts are they protecting themselves against the shorters making a killing if this falls back to today's low (or further) in the coming days/weeks?
Is it not true that regardless of the fundamentals any share that takes off in the way this did last week is highly likely to then fall in equally spectacular style?
No doubt this will find some sort of market value in the coming days, weeks and months but where that lies is anybodies guess and in the meantime it could hit the floor as soon as reach the moon!
Incredibly high risk imo & one for only the very brave (or perhaps foolish) to gamble.
GLA