Hayashi

A look at turnaround stock behavior
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Why when good news of turnaround, prices stay put?
When a stock does a turnaround, the people inside the company and those working with the company like suppliers, vendors, contractors....they are the first to start buying, the price moves up 100% or overshoot to more than 100%.

The price is than maintained at this level (70 to 120% higher before the move up) because of this late interest. Why didn't it move higher? They are many who bought long ago before the insiders push it up, these are the sellers who sell an opportunity to take profit or cut small loss, resulting in the price going from 120% higher to only 70% higher.

Who come in late? Some outsiders see the turnaround and join in the fun. Insiders some are late too while other insiders are collecting and want more, so these people maintain the prices and try not to push the prices higher as they have not collected enough. Usually it take a few months to a year.

The next surge is when the results of the full year confirms the turnaround. Now more are aware while insiders take the opportunity to push it into a multi baggers and take profit
In the end, insiders get their shares at a much lower average prices while new buyers are happy to join in.

If you look at $Moya Asia(5WE.SI), it takes a short while to move to 3 cents, then the second phase it moves to 6 cents then to 12 cents.....the last surge is when the insiders sell to new retailer investors who only become aware.................................and then they test your patience for you to sell.....lol

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7 people like this.
keithang :

Thanks. Always late to the sales.... sad.

derenceho :

you stripe the bone of a operators.

div1g4in :

Reply to @wellhandy : Thats a tough question... lol. I wouldnt have an answer until the price actions and volume tell us so. Btw, I was freakingly bored sitting on the bench for the whole mth.. Haha.. Nevertheless, Wyckoff shake me up and make me awake. These few weeks been mugging on VSA-related materials.

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