ASX Price queries

[Sab666]

Hello everyone,

I am very new to this investment game so at the moment my mind is like a sponge trying to absorb as much as possible. I have noticed on the ASX announcement lists that there are a lot of of queries by ASX to companies who seemingly have no idea why their price jumps unexpectedly. Just today there was NGE which jumped to 50% with a little buy/sell frenzy and the company had no idea about it.

Is this evidence of the famous pump and dump tactic or something else?

Thanks!

 

[burglar]

... Is this evidence of the famous pump and dump tactic or something else?

Thanks!

Hi Sab666,

Welcome to ASF.

To me, it looks like an attempted P&D.
As you say

a little buy/sell frenzy

It may be a precursor for a bigger pump.


A re-rating of the intrinsic value of a company,
would not happen over such a tight time frame, in my opinion.

 

[barney]

Hello everyone,

I am very new to this investment game so at the moment my mind is like a sponge trying to absorb as much as possible. I have noticed on the ASX announcement lists that there are a lot of of queries by ASX to companies who seemingly have no idea why their price jumps unexpectedly. Just today there was NGE which jumped to 50% with a little buy/sell frenzy and the company had no idea about it.

Is this evidence of the famous pump and dump tactic or something else?

Thanks!

I believe they have a sale agreement with Santos with a deal worth up to $40 million. Their current market cap as of yesterday was around $12 million. On that deal alone, they look undervalued in cash terms, but the immediate selloff after the spike looks interesting ........... tomorrows price action should clear a few things up .... or not

 

[burglar]

... the immediate selloff after the spike looks interesting ........... tomorrows price action should clear a few things up .... or not

The deal with SANTOS had been announced in February with a spike in volume.

A further announcement was made on 18/8, last week.

PPL 269 Sale of 50% Interest - Initial Conditions Satisfied:
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01541919

The deal is conditional, not all conditions having been met yet.

PS Sab666,barney, ...
Having done some research, my previous post may be wrong!

 

[barney]

The deal with SANTOS had been announced in February with a spike in volume.

A further announcement was made on 18/8, last week.

PPL 269 Sale of 50% Interest - Initial Conditions Satisfied:
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01541919

The deal is conditional, not all conditions having been met yet.

PS Sab666,barney, ...
Having done some research, my previous post may be wrong!

Yeah I don't know much about this one, but it if the cash is "about to hit the fan", so to speak, then that might explain the interest in the stock ............. possibly from day traders trying to cash in on news as they often do .....
......... or another myriad of reasons why price moves

 

[pixel]

Hello everyone,

I am very new to this investment game so at the moment my mind is like a sponge trying to absorb as much as possible. I have noticed on the ASX announcement lists that there are a lot of of queries by ASX to companies who seemingly have no idea why their price jumps unexpectedly. Just today there was NGE which jumped to 50% with a little buy/sell frenzy and the company had no idea about it.

Is this evidence of the famous pump and dump tactic or something else?

Thanks!

Welcome aboard, Sab-with-the-Beastly-Number

Shares can rise or fall surprisingly for any number of reasons; your pump'n'dump suspicion is just one of them.
In the case of NGE today, I believe Burglar is on the right track: It only takes a couple of punters to buy in the morning when many might be expecting an imminent announcement, and off it goes. Whether the initiators did it on purpose or in good faith, respondent sayeth not. (It could be an interesting exercise for the ASX to check whether some sales near the top were actually "related" to the initial starters. Wouldn't surprise me at all...)
Burglar was simply using an inappropriate chart to demonstrate the mechanics of it. Rather than an end-of-day line chart, I suggest we look at a one-minute Intradayer like below. (A tick chart would be even better, especially when the moves are in the sub-minute range, like they often are during those stop raids we've been talking in another thread.)



Now, in NGE's case, it is interesting to note that the peak had already been reached by the time the ASX cottoned on and sent the Please Explain notice - popularly known as a "Speeding Ticket". But consider the company's options: If they admit there will be an announcement imminent, they're obviously in violation of "timely disclosure" obligations. In years of observing such exchanges, I haven't come across a single case where the company replied "Oh yes, we told someone in confidence, and he may have started to buy early." It's usually the Sergeant Schultz routine "We know nussink!" Which, again, I can't recall ever to have been followed up by the ASX and found to be untrue.(and provably so)

As NGE fell back right to the starting point, one may reasonably assume that there was nothing more behind it than some traders speculated on an expectation, which proved incorrect at this point in time, so the buying petered out. As is often the case, the sellers near the top will be happy about the opportunity to make a profit, while the gullible buyers that picked the wrong time and price to enter will feel duped.
Welcome to the World of Trading

 

[Sab666]

What a great forum to learn things in. Thanks for your responses guys, muchly appreciated.

Another couple of pieces of the trading puzzle are in place. (only 897 million to go...)

I actually was wondering how strictly the companies followed the "timely disclosure obligation" in this regard. I guess its very hard to prove/disprove when they can just play dumb.

Now to the next phase of my learning curve, how to screen and research companies with future potential. Ill be back in a few years.. :1zhelp:

 

[MVFC182]

Was also curious about this topic today as well, thanks for the info guys

 

[burglar]

... Welcome to the World of Trading

I was unable to capitalise.
I got my order in late on the pre-open.
(did not want to show my hand too early)

It went into review.
The broker rang and asked me to identify myself.
Asked if I was currently making orders.
Someone was making a big order on my account.

Ok. That would be me!


By the time the review was lifted (nearly 10:30)
NGE was about 30% higher.

 

[pixel]

I was unable to capitalise.
I got my order in late on the pre-open.
(did not want to show my hand too early)

It went into review.
The broker rang and asked me to identify myself.
Asked if I was currently making orders.
Someone was making a big order on my account.

Ok. That would be me!


By the time the review was lifted (nearly 10:30)
NGE was about 30% higher.

You're not with Westpac by any chance?
They will sometimes leave my orders in "review" as well, and when it comes out, I often no longer want it. But while in Review, you can't even cancel an order. "Not happy, Jan."

 

[burglar]

You're not with Westpac by any chance?
They will sometimes leave my orders in "review" as well, and when it comes out, I often no longer want it. But while in Review, you can't even cancel an order. "Not happy, Jan."

Not Westpac,... but netwealth.
When it came out, I also no longer wanted it.
Like yours, I couldn't cancel.
Like you "Not Happy"

Lesson learnt, didn't cost me a cent, (but I did forego a wonderful setup).

Sometimes things are not meant to be!