Losing faith
11.35 am There's some follow through buying in stocks thanks to more of a rebound overnight but it's cautious and the gains were quickly trimmed so that the ASX 200 is up 0.3% at 5926.
S32 has copped a number of downgrades but more concerning than that is the suggestion that investors are losing faith in the management's ability to control costs. Once that's lost, it's hard to regain and despite strong cashflows and a healthy dividend, it seems unlikely that there'll be much of a bounce. The stock is lower by 4.6% and it was a poor error to hold overnight given the late sell off yesterday.
Otherwise, I'm out of IGO for a small gain and doing well in Lynas.
1.02 pm Sold the S32 at 331 as they couldn't hold in the mid 330s. Shocker.
4.26 pm The index slipped to close 5 points down at 5904.
I sold the LYC at 196.5 and some NWH at 151.5 - they were up 4% on the day so some consolation.
A new long is SYR. I had this on my list yesterday but it's still ok. It's rolling up after a very steep pullback so a retracement rally but first resistance is 390 giving it room to move.
And I've shorted Platinum - PTM - the fund manager. It's a company I like but looks to be completing a correction with a potential pennant implying another test of the recent lows.
S32 has copped a number of downgrades but more concerning than that is the suggestion that investors are losing faith in the management's ability to control costs. Once that's lost, it's hard to regain and despite strong cashflows and a healthy dividend, it seems unlikely that there'll be much of a bounce. The stock is lower by 4.6% and it was a poor error to hold overnight given the late sell off yesterday.
Otherwise, I'm out of IGO for a small gain and doing well in Lynas.
1.02 pm Sold the S32 at 331 as they couldn't hold in the mid 330s. Shocker.
4.26 pm The index slipped to close 5 points down at 5904.
I sold the LYC at 196.5 and some NWH at 151.5 - they were up 4% on the day so some consolation.
A new long is SYR. I had this on my list yesterday but it's still ok. It's rolling up after a very steep pullback so a retracement rally but first resistance is 390 giving it room to move.
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