Wolfson

I've seen shares fall on good results before but this is just silly!

Surely this has got to be a buying opportunity!

Financial Highlights

Revenue increased by 94% to $56.9m (H1 2003, $29.3m)
Gross margin improved to 50% (H1 2003, 46.4%)
Profit before tax increased by 123% to $9.3m (H1 2003, $4.2m)
Diluted earnings per share increased 94% to 5.77c (H1 2003: 2.98c)

Operational Highlights

158 design wins in the period
9 new products introduced in the period
Continued strong uptake of products by major OEMs
Increased sales in Japan and Korea to 29% of group turnover
31 new technical and commercial staff

I'm in!

There were some big sells earlier but the price has hardly moved.

So I'm guessing that we have found the bottom.

not yet. Catching knife comes to mind

Good call Snip, falling knifes are hard to catch and often end in tears, that why I called this one a wee futter :)

I will stick to my normal rules, and if it heads the wrong way and gets to my jump out price I will take the hit and curse my stupidness :)

Simon

Snip & simonpaynton,

You may be right!

I was hoping for a bounce this morning but it didn't happen & the more I look into the patent dispute, the less I like it.

With most pundits predicting a general fall in the markets as well, I'm even more nervous about it.

Sooooo, I've sold most most of them at a small loss.

& a small regret rather than a big regret.

Simon+ If you have a look at the intraday candle chart for to-day it would seemed to me that you may have caught the reversal. Wait until the morrow.

Fred1new, the drop in share price does look like it has slowed (maybe stopped), but what shows that in a candle chart??? is it the flat line??? With any luck this may have reachead the bottom.... I really hope so, I aint had much luck these last few months..

Simon

The problem I seemed to have at the moment is trying to think what a share should be doing, rather than accepting what it is doing. Any time I try to forecast from the charts of the shares I am interested in, the reverse seems to happen. Last night this share seemed to show possibillity of rising in the morning sun. Looking at the 2 day candles to-day there appears to be a power cut and the chart is heading south again. Watch for the reversal as I write this. The volumes are small.

Still think the drop in price is overplayed in regards to fundamentals and it will recover in the long term. I will continue to hold. May if I see the bottom buy some more. Watch out for directors buying.

I'm glad that I had 2nd thoughts.

BUT I'm still watching, ready to jump back in.

This is a typical fall after such a strong warning from the Company about future suppies.

Some weeks back, Institutions were buying strongly at 240 and got the price up to the 280's-290's. They must have done that with a reason in mind.

Prior to that and just before the end of year results the price was a bouyant 3 plus, but after the strong results for the year the profit taking happened and down it went.

I do not think that this will bounce back in the short term to any previous level in the near future. I think it will drift below 2 and not really know where it should be until such time as the Company are able to reassure that the suppy problem which they foresaw, is surmounted, and who knows when that will be.

IMHO do not buy yet but wait for a turn around based on some evidence of this.

If I held now at a higher price, which I don't as I sold prior to the above, I would battern down the hatches and wait for the storm to clear.

DYOR

a gap down like this in candle charts is bearish. If you are going to buy then watch for good strong positive volume and preferably a bullish candle. When reading charts it is important to be a detached, unthinking observer

(try printing a chart and turning it upside down if you aren`t sure)

Why buy something that is clearly in downtrend in the hope you have caught the bottom when there is no clear evidence that it has bottomed out.
Wait for it to turn and go into uptrend, on rising volume if you wish.
So you may lose a few points in doing so but you will sleep at night, smug in the knowledge that you are immediately into profit. Bottom fishing is very dangerous. You will lose more than you win.

and the important clue was in the bearish candles at around 220. Prices had tried to go higher but were rejected

I agree with all above. W/s a bit longer until price and volumes are definitely trending.

Yep, all good advice...

Thankfully after a sensible re-think I sold my minor share this morning (when it was 0.3% down), took a minor hit, hopefully this time the lession will stick with me :)

Simon

simonpaynton Annd the rest.

Thanks for a good thread of learning for all on this one.

Very interesting all the way through.

Good luck Si

simonpaynton

A lesson for us both!

Yep, first lesson of shares, dont worry about making mistakes :)

Trouble is I read books, look for good shares, find um, then buy something completely different in a bout of crazy thinking........

Saying that, just to prove I never learn, I sold this share and then purchased TES (when it was up 70%) and its now up to 120%, already got a nice profit..... Still bonkers to buy that, but hey, worked out this time.......

(Watch it fall flat on its face in the morning)

Simon

Sell now then.......

seawallwalker,

I sold yesterday, shortest time I've ever held a share.

Good stuff, but what about simonpayton.

He should too..........