My Take on NMS sp FWIW
It doesn’t take much to peruse the market as whole to see that even good stocks have copped a hiding and anything that has not met or bettered earnings expectations has come under the microscope and been whipped. Have a quick gander at QBE e.g. 1.9B profit when the market was looking for 2.1b. QBE – astute management spent cash reducing business risks going forward. Go figure that!
MRM is down nearly 50% from its previous high. The list is long and the type of share getting hammered is not restricted to ‘specs’. Only shares doing well atm are the agricultural companies.
NMS sp slide imo is due to the following reasons – it’s not an exhaustive list either!
1. HY earnings not overly exciting although nothing terminal or too worrisome.
2. Huge volume of margin calls on retail investors. Therefore, cash is bound to be taken from holdings such as NMS (low LVR on NMS becomes a big weight on a leveraged portfolio) and used to prop up flagging long term blue chips.
3. Most sellers have probably been, imo, those who bought in before the spp and then participated in the spp. Fact is most probably participated in the spp on the earlier preceding positive price (alliteration – got to love it!) momentum without having a sound knowledge of the company i.e. they haven’t been reading SOB’s and others outstanding and long standing research. No evidence of big insto sales i.e. no 3B’s stating this at least.
Stick with it ladies and gents if this gets to 0.50 then pig out. Just think back to when it was over $1.20 – I used to curse myself for not grabbing more when it was in the $0.50 range – now it is – I’m going to grab some more. Might get some options as well although they look tightly held atm.
It doesn’t take much to peruse the market as whole to see that even good stocks have copped a hiding and anything that has not met or bettered earnings expectations has come under the microscope and been whipped. Have a quick gander at QBE e.g. 1.9B profit when the market was looking for 2.1b. QBE – astute management spent cash reducing business risks going forward. Go figure that!
MRM is down nearly 50% from its previous high. The list is long and the type of share getting hammered is not restricted to ‘specs’. Only shares doing well atm are the agricultural companies.
NMS sp slide imo is due to the following reasons – it’s not an exhaustive list either!
1. HY earnings not overly exciting although nothing terminal or too worrisome.
2. Huge volume of margin calls on retail investors. Therefore, cash is bound to be taken from holdings such as NMS (low LVR on NMS becomes a big weight on a leveraged portfolio) and used to prop up flagging long term blue chips.
3. Most sellers have probably been, imo, those who bought in before the spp and then participated in the spp. Fact is most probably participated in the spp on the earlier preceding positive price (alliteration – got to love it!) momentum without having a sound knowledge of the company i.e. they haven’t been reading SOB’s and others outstanding and long standing research. No evidence of big insto sales i.e. no 3B’s stating this at least.
Stick with it ladies and gents if this gets to 0.50 then pig out. Just think back to when it was over $1.20 – I used to curse myself for not grabbing more when it was in the $0.50 range – now it is – I’m going to grab some more. Might get some options as well although they look tightly held atm.