What a weekend!
I was hooked on the Advfn bulletin board for IQE:IQE.
I can't believe I was so close to capitulation on Friday, but thanks to some fantastic posts I gradually saw through the dirty tricks of the shorters, and along with many other investors battened down the hatches for war!
It became clear that there are some pretty knowledgeable accountants invested in IQE:IQE and their explanations of the spurious nature of the "analysis report" published by Shadowfall Research & Capital LLP convinced me of the desperation shorters will go to in order to drive down the share price.
Even so, I was pretty convinced the price would be driven down on Monday to trigger stop losses and test the water for a bigger fall.
I wanted to be ready so decided to sacrifice 80% of my AMYT:Amryt Pharma shares in order to try and get a bargain price.
It worked!
I woke at 7am and immediately checked the RNS feed, and there was the IQE:IQE response.
It was a good response - my confidence was up.
Then another RNS - Oppenheimer Funds had increased their holding from 3% to 5% on Friday.
This was getting better!
Then the icing on the cake - a fantastic note from Barclays saying "Neither news nor merit in ShadowFall report, reiterate Overweight" and a price target of 210p.
That was the green light - at 8am I sold 20,000 shares in AMYT:Amryt Pharma for 19.5p making a tiny profit of £102.97 (2.7%), reduced due to all the commission charges staying with this transaction. I kept hold of 8,313 shares and took away the purchase commission costs, so these are £68 (4%) up.
This liberated almost £4,000 so I checked the IQE:IQE price and it had dropped to around 91p as predicted. I put in my buy order and got a price of just over 91p but when I tried to complete it failed. I tried again and it had gone up to 92p, but failed again.
There was much cursing.
I tried again and it came up with 92p once more, but this time it worked. I managed to bag 4,200 shares costing £3,875.95 and breathed a massive sigh of relief.
Now the big question - would the price capitulate further or would there be enough buying pressure along with closing shorts to see a recovery?
I didn't have long to wait, as before 9am we were in the blue on the day and I was 10% up already.
So all the evil shorting campaign had done is give me a chance to buy a load more shares at a ridiculously cheap price - nice one guys!
Given the carnage in the rest of the market the price did slip into the red on the day, but a rise from offer price of 92p this morning to bid price of 101.9p tonight is pretty bloody amazing.
It has compromised my weighted average price, which went up from 39p to 59p so my paper profits as a percentage of cost price have dropped to 72%, but they are standing at £4,778 and I'm anticipating that will rocket once all this nonsense blows over.
The daily chart shows just how brief the drop to 92p was - I usually miss those opportunities, but this time it came off.
All I can do is hope that we can at least hold this price until the next results are out in March. Many of our customers are giving updates this week, so that could prove helpful in case the shorters pile on more pressure, and maybe some of the institutions that bought for 140p a few months ago will be looking for a bargain?
This episode has shown off the best and worst of the stock market. The nasty tactics some people and funds will stoop to in order to make profit, and the strength in private investors to defy them and rally the troops for a fight back. It's been really exciting, but I fear it's not over yet. We won a battle today, but the war may have further to run...
No comments:
Post a Comment