Forum Archive Index - January 2002

["nick" <rathel@xtra.co.nz>]

               First point, today it was seen that the fourth largest share 
holder is
INCREASING his holding.
      Second point , the selling now is due to the short term traders getting 
out
after a quick gain.  You have no evidence that any long term big investors
are leaving
     Third point to overlook fundamentals seems rather silly especially 
considering
that in two weeks time there is a dividend record date soon to be followed by a 
float.
  We know you would of made a fortune (as always)
 When i posted regarding the company it was from a medium/long term perspective
not that of a short term trader.
   The fact that i am buying from a trader is neither here nor there, they will 
probably
be in and out 10 times , by the time i sell the shares if in fact i buy any.
  So my parade isnt rained on as you put it, how can it be when you have 
provided not
one piece of information regarding the company?

 Nick



> I don't want to rain on your parade, but thought it would be good to present 
>a rather different opinion re LSG, by way
of balance, perhaps.
> I know nothing of the fundamentals of this stock, but would not, however, 
>consider buying it for the following reasons
:-
> (1) It has recently broken through its trendline, giving a Sell signal.
> (2) There is strong resistance at 85 cents.
> (3) There is a large Buy/Sell imbalance (143,434 bid, 586,730 offered) This 
>means that over four times as many shares
are for sale as are sought.
> (4) Buyers are weak - the top Buyer at 81 only wants 1134 shares.
> (5) There is very heavy selling pressure at 85 (327,649) This will reinforce 
>the resistance already existing at that
point, and will make this level even harder to penetrate.
> 6) This stock is very lightly traded - only 15 trades all day, average trade 
>about 5,500. It is all but impossible to
make a serious investment in a stock like this without pushing the price right 
up. It is equally hard to exit without
depressing the price substantially. Slippage is therefore very high.
> (7) Larger holders of this stock are getting out, and small holders are 
>getting in. This typically happens toward the
end of a trend as professionals sell to amateurs. (Average buyer 7000, average 
seller 17,000.)
> (8) If I was interested in this stock, I would have bought and sold at the 
>trendline breaks, making well over 30% in 10
weeks. Many traders will have done just that - you will be buying from them. 
The big difference is that you will be
running a lot more risk than they did, with less chance of reward, to my mind.
>
>              Phaedrus. (Back from holiday, tanned and fit!)
>
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