Forum Archive Index - January 2002

["andrew cottingham" <arco@adinfinitum.co.nz>]

A good example of TA firing on all cylinders and that brokers do not have all the answers. Here's the up to date chart showing some of the signals. (I bought 3 days late @ $2.62). WORD Doc attached WAM.

Andrew

----- Original Message -----

From: nick

To: sharechat@sharechat.co.nz

Sent: Sunday, January 06, 2002 7:55 AM

Subject: [sharechat] WAM an interesting example of changing sentiment

      Remember a few months ago, WAM was at around 2.50.

Interesting at the time were the differing opinions.  I thought them a buy on instinct ie oversold

Phedorus thought they were a buy when they went into uptrend 2.47?

and Peter gave us a highly detailed fundamental report on why they were only worth

2.20 !

http://www.sharechat.co.nz/archives/2001/10/msg00273.shtml

       

   Adding to all this a big fund manager was unloading shares as fast as possible.

General sentiment seemed to be that competition was rising and the loss of the auckland

contract was detrimental.

         Now a few months later what do we find ? Shareprice rising over 3 dollars,

all the brokers picking the stock as one of the years star performers and suddenly

once again WAM are back in favour.

 

      What does this all tell us?  

1. Sentiment changes rapidly

2. Share prices fluctuate for no apparent fundamental reason (company not changed anything)

3. Brokers and fund managers move markets and are fickle creatures

4. Fundamental analysis is not guaranteed to pick prices,  ie peters post

5. T.A ignored all this and bought at a good time

6. Ignore brokers picks,  (probably recommended all those they currently overweight in so further gains unlikely)

 

 Nick

         

WAM.doc

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