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ASX stock in limbo?

Discussion in 'Beginner's Lounge' started by aussymatt, Aug 28, 2018.

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  1. aussymatt

    aussymatt

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    Guys been lurking here for abit and posted a few times . I'm new to shares but recently started a portfolio. Have bought and sold several stocks recently but have a question. I recently sold some stock on the ASX at a profit but the company in question has pretty much dropped since I executed the sell order on 17/7/18.
    I'm wondering since the share price has dropped around 14% since then does that mean that most likely no one would buy my shares until either the share price increases back to around my sell price or beyond since at current there has been no credit for this stock and is there a valid time frame that sold stock remain in this "limbo" state?
    I'm through commsec also if that helps at all.

    Cheers
     
  2. MarketMatters

    MarketMatters

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    Have you been caught with an illiquid stock? or news impacting the company? I would suggest you find out what happened to cause the fall and determine your course of action from your findings. 14% is quite substantial if it occurred in a day however if over a period of time then this implies a lack of faith in the company's direction, earnings, management or some trigger. If it has been in "limbo" as you say, then it is possible that it is finding support with buyers stepping in due to a cheaper valuation for the company although this is not guaranteed dependent on the cause of the price fall.

    How long will it remain discounted? How long is a piece of string!! Could be as simple as the company turning around the issue that caused it fall or could be more complex and take longer.

    As you are on Commsec check out their tutorials on trading shares. Under Support/Education.

    If the stock is liquid (being traded) you will find when obtaining a quick quote it will display the list of buyers and sellers (including volumes). Assuming there are buyers this should answer your question if you wanted to exit the holdings.
     

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