# High volume, low price?



## Benm092 (9 May 2013)

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!!!


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## CanOz (10 May 2013)

*Re: High volume low price?*



Benm092 said:


> 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?
> ...




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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## burglar (10 May 2013)

*Re: High volume low price?*



Benm092 said:


> ... Any help from anyone would be very appreciated.
> For reference the company is CWE.
> Thanks!!!




CWE 10 year graph




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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