How quickly things can turnaround when you start building your empire on the value of your paper. I would not be surprised to see some of the recent acquisitions now sold on as the company is forced to return back to basic.
These types of shares are a perfect example of the fact there is a time to buy a share and with the majority there is also a time to sell Nothing lasts forever.
Signs of a partial recovery but the shares have halved in 12 months. The previous expansion strategy of using paper to buy other companies is dead in the water - what next for the company?
I think there will be a lot of stale sellers, who took paper when the company was acquiring other businesses, looking to sell into any rally. What is the company's new strategy going forward?
This is the epitome of a bull market stock, a company using a strategy of acquiring other companies using highly rated paper. Is it a possibility that the company will soon start to unravel with various elements sold off separately?
There is significant resistance around the $85 mark and upward rising support around $70. Interesting!
I thought we might have seen a bit of a bounce in this one over the last couple of months but it is actually drifting. Anyone following this one?
This was always the danger; using paper to acquire competitors only works when the share price is riding high. Once you take your foot off the gas, look what happens, the shares come crashing down.
It is sad to say but companies that expand this much will live and die by the paper they use and very often come a cropper. The next stage would be selling off assets they bought in recent years to keep themselves afloat.
Unfortunately, this is a prime example of a pump them and dump them investment policy were highly rated paper is used to grow businesses.
