Heavy selling on ASX on Friday. Almost every stock dropped. Some...

Heavy selling on ASX on Friday. Almost every stock dropped. Some blue chip shares even dropped 2-3% on Friday. ASX 200 closed down 82 points (1.4%) on Friday. It was actually surprising to see that BKL closed only 27c lower or 0.3% on Friday.

It appeared that BKL was going to touch its 52 week low or even hit a new 52 week low but it did not drop significantly on Friday. BKL shares were sold but selling was absorbed that is why share price did not drop much. If selling is getting absorbed on a day when overall market is being sold then why BKL is not going up when overall market goes up. This occurs when shares are being accumulated. Price rise is being prevented so that accumulation can be done at these price levels. If BKL is weak then Friday was a great opportunity for shorters to sell down and cause a break in share price to create new 52 week low.

There is definitely something brewing but the worrying sign is that BKL dropped slowly and steadily in an organised manner from $101 in beginning of July to $88 in a month. This can sometimes create a false confidence in general public and novices like me to buy on dips.

Overall fundamentals are still fine for BKL. Cash flow is good. Sales are growing. It is a matter of time and new CEO announcement and full year results can lead to recovery in share price. The longer it stays below $100 more stronger the accumulation will be and the rise thereafter will be sharper as there are only 17m shares and Mr. Blackmore holds a quarter of them and he is not selling any.