Hi tjtian ....I am no technical analyst - But I have analysed that in the hands of the right ‘chartist’ a chart is a brilliant tool to decrease risk, maximise profit and have a lot of fun.
Once I asked what happens when two listed companies merge. The larger one’s chart prevails.
Therefore I suppose share issue is much the same; simply an event in the chart timeline that affects volume at time of issue and after.
As I understand it the framework of each chart, based on past patterns, recent and long term, holds the shape of future direction - often to a minute degree including mergers and everything else .
Even a ‘black swan’ event will do it’s swan dive according to a predictable geometry.
I love it - so very ‘Mandelbrot set’ and inevitable and magic and ‘moving finger writes and having writ moves on..’ all at the same time.
But as said I am the rawest of beginners - looking at the sea rather than dabbling toes in it - and am happy to be corrected.
To ‘dabble’ a little seeing as I am here :
Without knowing much at all about Bingo I see there are some key dates coming up;
“Bingo’s rivals have been asked to submit to the ACCC by January 30 comments on whether the Banksmeadow divestment will address competition concerns with a final decision by the regulator due February 21.” (from The Australian story above)
...and the half yearly (expected in February 26.)
So I figure there’s less than six weeks for anyone wanting to acquire to get on board.
Looking at the one year candlestick chart on a free website I can see there was massive selling since last October so I hope there ARE people wanting to get back in board . https://stocknessmonster.com/charts/bin.asx/
So I would now expect volume buyers to aim at keeping the price as low as possible in the next weeks so as to accumulate and I will be nervous if this does not happen.
This is offset by the fact Saragian (hero chartist) reckons $2.40 to $2.43 represents a fundamental line in the sand.
I interpret this to imply even if the DADI deal falls through BIN is currently undervalued .
Which is very reassuring.
Cheers
PS as a change of subject back to fundamentals :
Bingo got a mention in this Australian Financial Review story about Suez last week .
The link may have already been posted, nevertheless: https://www.copyright link/news/ene...am-as-suez-joins-new-wa-plant-20190107-h19soi
Suez is setting up a $400 million plus plant at Rockingham in WA and the story looks at what else is going in in the field
........ “.................Suez has agreed to supply the plant with 65,000 tonnes of waste a year for 10 years to operate and maintain it for 20 years, as well as removing any waste and buying some power to use in its operations around Perth.
The French giant is also working with Australian Paper on a $600 million plan to convert 650,000 tonnes of waste from Gippsland and Melbourne landfills each year into energy for use at the Maryvale mill in the Latrobe Valley, saving 500,000 tonnes of carbon emissions.
