Stock value

Iamagolgbug · March 2017

Can anyone tell me why there is always sellers and selling pressure when nobody has purchased stock for less then it is selling for and how is it possible that based on customer accounts continuously grow. WEALTH Simple has only 20k clients and we have 1.5 million.........who is the seller??????ssss

GoldIsCurrency · March 2017

As shareholders of a start-up company there is some volatility to be expected. Once the company is making quarterly earnings the share price/action will be a whole lot different then what we are currently experiencing. It is frustrating to watch right now but it is best to have a longer term outlook.

Earnings can happen just like that if the right type of business clients are acquired.

Powerlunchmoney · March 2017

The market doesn't fully understand XAU in my opinion. The fee reduction wasn't well received by investors, but 1.4M customers loved it. The market will catch up when quarterly earnings increase. If you have conviction, this is a buying opportunity IMO but this is still a nascent technology to some degree. My .02GAU

TomSwift · March 2017

I bought stock as soon as they released the fee reduction, as this signaled to me that the company was doing well. I guess to other investors, the fee reduction was a bad thing. Never understand the logic of stock traders, which is why i'm a buy and hold kind of guy.

SpontaneousOrder · March 2017

When something I really want to own, XAUMF, is on sale, it's great!

GMONEY1 · March 2017

SpontaneousOrder said:
When something I really want to own, XAUMF, is on sale, it's great!

Same here @SpontaneousOrder. XAUMF, Silver when the gold to silver ratio is greater than 60, otherwise gold... all day ...every day

Iamagolgbug · March 2017

Well say what you want. Someone keeps turning stock to cash. It makes no sense for a small investors who are in for the long haul to keep selling. Someone has a large block that is slowly being riddled away!!!Period

GoldIsCurrency · March 2017

@Iamagolgbug If you are in for the long haul then whatever the share price is today doesn't really matter. Sure it is frustrating to watch in the meantime, I do understand that feeling and share it as well.

Keep in mind Goldmoney received acceptance from the TSX to do a share buyback on 3,000,000 shares. I haven't seen anything show up on CanadianInsider yet but I am confident we eventually will see some buyback/cancellations. The reality is the share price is trading a lot lower than what I see it being worth. Hang tight.

Goldmoney Inc. Announces Normal Course Issuer Bid
TORONTO – (December 14, 2016) – Goldmoney Inc. (TSX:XAU) (“Goldmoney”), the world’s 100% reserved gold-based financial network, today announced acceptance by the Toronto Stock Exchange (the “TSX”) of Goldmoney’s Notice of Intention to make a normal course issuer bid (the “NCIB”) to purchase for cancellation a maximum amount of 3,000,000 common shares of Goldmoney, representing 6.62% of the 45,286,024 common shares forming Goldmoney’s public float as at December 12, 2016.

https://www.goldmoney.com/newsroom/news-and-blog/goldmoney-inc-announces-normal-course-issuer-bid

Goldmatters · March 2017

@GoldIsCurrency Good reminder GMH! Also, im not convinced that the buybacks always show up on CI (though you taught me that they sometimes do

)

You are right though, the NCIB should not be overlooked as this puts a nice support in. Its good to remember its there

GoldIsCurrency · March 2017

@GoldMatters It is my understanding it is up to the company whether or not they want to report it immediately. Some companies will report it near immediately and other companies like to fly under the radar and announce at a later date. I have seen both.

GMONEY1 · March 2017

@Iamagolgbug circling back to this post.

Iamagolgbug said:
Can anyone tell me why there is always sellers and selling pressure when nobody has purchased stock for less then it is selling for and how is it possible that based on customer accounts continuously grow. ....who is the seller????

First...in theory, whenever there is a seller there is also a buyer (and vice versa), so I'll frame this post with that and the caveat of nominally agreed upon price. Also, disclaimer: I own shares, and I haven't sold one.

A few things that could cause some selling pressure IMO (none of this is advice...just observations):

--If there are potential buyers sitting on bids (i.e. stealth-mode accumulators); wanting to accumulate the stock ...but just at a lower price. They might have a long term outlook of 5yrs... so they may want to buy in the $2-4 range and then sell some when the company matures or gets acquired and it is $100

--stop loss cushions- e.g. a manager is only willing to lose x% or $x on a position. Let's call the XAU mean $4-4.50CAD...if -20-25% is your stop, you're a rules-based seller.

--historical volatility and portfolio risk- based on the historical time series, past returns, and price action how wide is the prediction risk range & is there a theoretically "better" position to improve upon risk adjusted performance. For some sellers there might be a "better" theoretical position.

--limited trading history- the stock is relatively new, so 1)it's programmatic trading models are likely based on other stocks like TWTR (slightly more data...same trading patterns can be extracted) and 2)... even though historical performance is NOT a guarantee of future returns... "limited history" is often synonymous with "uncertainty" ... which usually carries a negative weight

--currency/arbitrage exposure & perspective -- XAU is priced in CAD; XAUMF is priced in USD (there is currency risk/opportunity there)

--stock prices are generally auto-regressive from day-to-day-- so the price today is likely related to what happened recently...circumstances change though in the longer term.

--position size & trading volume -- this is a low volume stock, so it can get knocked around (translation.....bigger players have more control...lead in to the next 2 points)

--big quants likely playing the technicals -- EMA50 lessthan EMA90 lessthan EMA200 basically since after the Schiff Acquisition (September 2016); slopes of those measures are all negative to date...and basically for 9 months...that seems orchestrated to me.

--Disruptive Technology Disrupts the banking status quo -- big banks are likely shorting the stock because Goldmoney (while small now) is a threat to their business models, fee structures, revenue streams, and market share. But banks have deep pockets and the ability to move around a low volume stock as they please.

So, selling pressure... I can understand that. That's why equities are risk assets.

All that said...

IMO, the vision and strategies that have been set forth by Goldmoney's leadership team are beacons of hope and vehicles of financial reform and positive change on a global scale; something that is much needed right now given geopolitical issues, monetary/policy negligence, etc. The core message of wealth preservation through a sound unit of measure and store of energy/time/labor... combined with advanced technologies of digital ledgers and contracts... make Goldmoney a great company to support. Those are some of the reasons why I choose to use their services and remain a shareholder.

Join the Conversation

Stock value

Comments