• Australian (ASX) Stock Market Forum

High volume, low price?

Discussion in 'Stock Market Nuts and Bolts' started by Benm092, May 9, 2013.

  1. Benm092

    Benm092

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    Hi, I'm new to the stock market and am trying to learn on my feet. I can find most of my information in blogs, how to's etc. however I have one question I cannot find the answer to. Possibly because I do not know the correct terms to search so I thought if I could explain what I want to know someone could help me out.
    I recently bought some shares. This company had a very high volume of shares and a very low share price 0.032.
    Is this high volume, low price dangerous? Does it have any advantages/ disadvantages? For me or the company? If so what?
    What can this tell you about the company?
    Any help from anyone would be very appreciated.
    For reference the company is CWE.
    Thanks!!!
     
  2. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: High volume low price?

    The way we understand volume and price is to visually represent the price, compared to previous prices. Whether that be end of day prices or intra day prices....

    In CWE's case, there has been high volume as you can see by the histogram's bars on the bottom.....

    The volume could have been selling, the price dropped further after...Perhaps one of the volume guys can comment....

    CanOz
     

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  3. burglar

    burglar

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    Re: High volume low price?

    CWE 10 year graph

    cwe.png

    Show the graph to a three year old.
    If they say it is going down, don't buy it!!

    Speed reading their reports indicates to me that the company, in 2007, was expecting to have a commercial plant in 12-18 months.

    This year they are relying on Govt grants and shareholders' purchase plan to support what appears to be an unfinished project.

    All talk, no walk! I wouldn't buy it!
     
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