TA works great when there is a bit of liquidity, but more and more of MRF's shares are accumulating in "Sticky hands" - you can blame the Astronaut Ted for that. The message is seeping out there, and with such a small m. cap and much of the company already held tightly, there just isn't the liquid stock to follow the textbook.
Keep in mind that todays action involved only $650,000 in total. Now hypothesise that 3 or 4 new investors (long termers) averaged $50 grand each - that's a big proportion of the days t/o. And more shares out of liquidity short term. I don't believe this stock will be a DTers plaything much more. When we had the 60 million share turnover, it was accompanied by a huge increase in SP which allowed large churn.
Just as an example, consider MRFOA. I have been watching closely over the last week. There are only 49 million options, mostly in the hands of key investors, so liquidity is very limited. About 3.5 to 4 million shares have changed hands over the last week, between .8 cents and 1.1 cents, and mostly in large chunks (up to 850,000 at a time.) I doubt there will be many more offered at that sort of price. There is a nice package at 1.5 cents. but after that the price is likely to range around 2c+.
Now, not many would attempt to trade these options when liquidity is low, and now they are in "sticky hands". the price is only going to increase as long as MRF is making progress.
Although not as illiquid, the same principle applies to MRF head shares. As more of nasa's "Value shareholders" come aboard (I am one of those, and I know a few others), and as long as the expected announcements continue to flow, there won't be much room for trading short term. This was demonstrated this morning when there was a clear attempt to bring the opening down to 5.5c (maybe to be followed by further action to get it lower). But the DTers were no longer in control, and we all saw what happened.
Don't ever expect a line on the chart that only ever goes up, but in a company this small, this close to producing cash flow, at such low capex and opex, there should be steady (sometimes a bit steeper) improvement with an occasional pause to catch breath.
Best wishes to all those aboard. It's been a blast over the last week, and we ain't finished yet.
And thanks again nasa for your unbridled promotion. (How much does Mr McGuckin pay you - you earn every cent LOL)
As always, DYOR.
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