The Nordic TCX prophet: Next steps + Optimal Sell/Buy Point
Current trade is purely algorithmic - and based solely on post auction results (see my previous posts with the elaborated explanations). Exit point- (for short tome investors) is volume based.
Current volumes will be in the areas of 500K units.
Sell point for the currently trading bots is when volumes will reach 800K - K1.2M (easy and fast cashing out for larger packages).
So these are clear instructions- both for those who are in and also those who are still out.
Greetings from your nordic friend:
I agree with Olaf even though I see in his Yahoo profile that he is from southern Sweden and I am from up north (the REAL Sweden)....
Here is my explanation: share price of small caps like TCX is not determined by performance indicators. If we consider P/E or other quantitative parameters the stock is (very) overpriced.
At this point of time, TCX Price is determined by three other parameters:
1. short term "manual" speculants (that are currently performing "cuncurrent selling" == buying at higher prices to drive price up
2. The BOTs Olaf mentioned
3. M&A prospects and the consolodation at teh mobile market that TCX's Israeli director is trying to lead.
I will elaborate on the optimal actions in my next post - but as Olaf said- volumes are the key.
I don't think TCX is overpriced - we still haven't seen EPS estimates based on the new share count. Also, there are not a lot of estimates out there regarding what TCX will earn. I personally think it is worth around $2 a share, assuming nothing big comes out of Ting, but clearly the market (and management) are acting differently. That said, I sold about 25% of my stock today at $1.89. In the short term, I think the stock is getting close to a point where it might just trade sideways until we get more clarity or earnings.