Rookie trader bought RCH. Any advice?

[Doris]

I decided to look for 'planets amongst the stars' and found IMI and HGR with volume and price rises on market dive days. I'm happy to hold as their products IMO have great potential, their markets are being developed and their AGMs are within weeks with expected progress reports. I began with SDL at .48 and sold at .81 and will buy in again soon.

My fourth choice, RCH, is considering three investments that I know of. After closing above opening (regardless of the All Ords) for nine sessions, I bought. It has closed below opening for the last five sessions. Any opinions on its technical potential? The moving average says it's due to rise but this could be only from the rise over the last month. Could it? Do I dump?

 

[prawn_86]

Very broad questions there Doris, and as you know no-one is really able to answer this as it is your own decision ultimately.

There are some good threads to search through in the beginners lounge if you want to get more information about what to do with a dog stock.

Generally ASF members are not willing to give specific advice as to what an individual should do with a specific stock.

 

[jackson8]

rights issue was announced 18th october this could have led to the buying spree over next few days leading up to 1st november when it was closed

buyers could have dropped off for this reason ex rights entitlement so has now retraced to earlier levels
still has a fairly solid buying depth
depends how long you are prepared to hang on to this for , short term could see it drop further , looking over a longer term could recoup any losses and more
there is nothing that is a sure bet market is very volatile for every winner there are lots of losers

 

[Doris]

rights issue was announced 18th october this could have led to the buying spree over next few days leading up to 1st november when it was closed

buyers could have dropped off for this reason ex rights entitlement so has now retraced to earlier levels
still has a fairly solid buying depth

Thanks for your help!

You'd think so... but...
Volume was low around the ex-rights date (2-3 million) but took off the week after to ten times this, with a 44-66% increase in price. Volume and SP are still above the ex SP. If the stock were valued, wouldn't the hike have come just before the ex date? The stock was chased up 46% over the week after the rights ann yet quiet for 3 days before going ex.

I'm amazed at the many surges in stocks with no announcements.

I've read the thread on dogs... excellent ideas... but this is a planet... Pluto?

This is like playing chess eh!

 

[Doris]

I've read the thread on dogs... excellent ideas... but this is a planet... Pluto?

Well... Pluto *is* a cartoon dog! Omen?

Pluto is no longer considered by astronomers to be a planet. Too small.
But then it does compete with Saturn's orbit, not wanting to be the outer body in our solar system. Patience, patience, patience...

PRE and KAL... now they're real planets today!

I've found I'm happy with black when my specs aren't green.

Anything but red!

 

[Doris]

RCH is *definitely* a planet amongst the stars!

With the All Ords down 9.1% atm, RCH rose 72% this morning but with profit taking, is consolidating at a rise of 61%... WHY?

Ann today was on the rights issue... ok... options exercisable at 1c... $$ for new project acquisitions...

But why have 77m gone through so far TODAY hiking this stock? We knew about the rights offer.

Does anyone know what project are they buying first? Maybe someone knows a deal is done and started the run?

 

[Doris]

RCH reply to the ASX query at 2:43pm today said they know not why today happened. No reasons they are aware of.

No lead from the DJ as it's their Thanksgiving holiday... but *planets* are not affected by it anyway.

RCH rose 77.78% with turnover of 102 million. This is 20x the average.

Wish I knew why!

But I'm happy...

 

[wipz]

Have a look at the prospectus, under 2.1, 2nd paragraph it talks about possible resource plays... Very interesting, any thoughts???

 

[Doris]

Have a look at the prospectus, under 2.1, 2nd paragraph it talks about possible resource plays... Very interesting, any thoughts???

Please elucidate... have not seen it. What was the U.S. resource interest?
What was 'the third country'?

 

[Doris]

RCH was .020 when I first posted 11 days ago.

Today it rose another 39% to .046 with 60 million turnover, yet I still don't have a clue as to its fundamentals. Just trusting what seems to be a dynamic change to the company.

At least with HGR and IMI I have reasons other than just tech to trust.

 

[Spaghetti]

Personally speaking only, if I do buy a stock without too much understanding about what the fundamentals are, I take a profit as soon as I can. I only hang on to stocks I know very well because you learn the support levels and you understand the factors that may influence the share price one way or the other. So If I know a stock inside and out and it goes higher than it's real value I sell. If it goes lower than it's real value I buy more. Real value is not always easy to work out but it can be done, albeit roughly, with enough work. Plus real value is dynamic so needs constant review. I could say a stock has a real value today of $4.00 but tomorrow I may say $3.50!

So I would suggest you spend some hours on this stock reading and understanding the type of business it is, what is normal value for this type of stock and just use stock forums to measure overall sentiment.

This is just me..others have held stocks they never knew much about and became millionaire but that does get close to gambling.

So I can only tell you what I do, but I am no millionaire...though pays better than being wage slave