RE: GOT A FEELING HERE TXP IS AOUT TO TURN3 Jun 2023 20:41
Hey scored,
Great timing, missing the many years of purgatory that us long termers have suffered!
This is the only stock that I have mostly bought and held given the underlying strength of the story!
Oh the irony as I tend to trade some hold some. That in hindsight would have been a more successful strategy here!
I sliced some at 114 way back as I needed cash.
But don’t let the BB be under any illusion, the only way the price goes up is if we get buyers. So those buying now at 60p even if they sell at 70p fair play!
Ultimately it’s buyers and traders we beed to get the volume up.
A lot of folk don’t appreciate that share prices often completely disconnect from value. As the algo is based on buys v sells as opposed to underlying asset value. So you often get a situation where 1% of the traded mcap can result in a 10% drop!
DEC is a classic example of that which yields over 16% and is a sector leader by any metric yet is significantly undervalued on a peer basis. (Not a tip!)
The market in London seems geared to drive transaction volume. That’s why there are so many ALGO trades and MM schemes. To generate volumes of transactions which generate liquidity and benefit the LSE. That’s also a good thing else spreads would be chaotic!
But it’s also why pundits claim the likes of UK insurers which are 9% yielders well covered would attract 40% SP premiums on the NYSE. They have the volumes.
Looking through the optics of low volumes driving price wildly north or south as opposed to value helps one deal with these periods of depressed SP’s.
But no that doesn’t exclude TXP’s own goals which just help drive that narrative! However, all can change for the better just as quickly!
Oftentimes the move north is much quicker than south. The MM benefiting from an inflated spread helps!. So close 60p open next day at 80p. 20p is all theirs! The house always wins!
How does your average PI cope with this. Well you can buy, hold and hug and hope and occasionally it will come off or you get one winner that rights all the wrongs!
If you look at the charts few companies are well up over 5 years especially small caps. Meanwhile Zak’s charts say they’re all gonna go up but few say going down which has been the reality!
As a PI you can average into a position and average out over time, but watch out for liquidity!
Or you can hold some and trade some.
I have tipped TXP on Tecan 3 times now as a buy at 60p and a sell at 70p. That’s a 30p return! A couple weeks ago I tipped it again to go from 60p to 70p. Which I still think is on.
However, this time I said hold. So if you bought 10k shares for 60p and sold for 70p 3x that’s 3k profit or 50% on 3 trades. So on your 4th trade you now get to buy 15000 shares instead of 6000 this time to hold!
I doubled my money on YU this way!
Or of course you can combine all the above which is what I tend to do and at various times!
Anyways good luck
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