Forum Archive Index - May 2002

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

        I am not convinced by this falling trend argument.  For a few days after the placement of new shares was announced any new buyers would have payed a lower price BUT the lower price was an illusion. The price was lower but they were also buying a smaller slice of the company, they were actually paying a higher price!!

        The shares were always destined to go to around .55-.56 cents which made them theoretically around the same price as before the announcement.   This is why i think the wedge was dubious, at least to start with, there was bound to be a sinking in price to around .55 .56 cents.   

     However once the "wedge like object" was in place it became a self fulfilling prophesy. We all knew the price was going to explode due to all the publicity this stock, and wedge was recieving. When the general market picked up it was a pound to a penny that AUO was going to sprint out of the traps.

         I was so confident on this one that i bought the day before the price took off, for .54 there was so much interest it was bound to happen.  I sold a third of the shares yesterday at .65 and am still holding the rest.