Forum Topics DRO DRO Pause in trading

Pinned straw:

Added 4 months ago

01:53pm AEST

Security Code: DRO

Pause in Trading

Trading in the securities of the entity will be temporarily paused pending a further announcement.

Hawkdog27
Added 4 months ago

speeding ticket?

I was lamenting the fact I sold out at 2 bucks after buying in at 1.40 - today's sell off helped that. That was a big sell off.

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Arizona
Added 4 months ago

@Hawkdog27 BIG sell off.

I don't hold but have been watching the show closely.

Right now selling out at $2.00 was a brilliant move - You are a genius!

Congrats

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BoredSaint
Added 4 months ago

Whats the name for a speeding ticket thats for a downward movement. Skiing ticket?

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Arizona
Added 4 months ago

@neke86_ Are you suggesting there is something fishy going on here?

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Bear77
Added 4 months ago

I think it's a speeding ticket anyway @BoredSaint regardless of whether they are speeding up or down. @Arizona I'm guessing that the ASX has asked DRO to explain the rapid SP movement today, and have paused trading in DRO while DRO respond to that request. This is standard procedure when a share price moves so much on no news, but they sometimes don't do it with really small companies because they probably expect large SP swings due to liquidity issues. DRO is worth nearly $2 billion, or were yesterday, according to the ASX, so these types of SP movements will always trigger a "Please Explain" from the ASX for decent sized companies like this.

This could be leaked bad news or it could just be somebody with a substantial position selling down or out to lock in good profits. If DRO come back with a "we know nuthin'" response, then it's likely a sell down/out by somebody, which could be for any number of reasons, but would likely be to lock in profits.

There's also the "stop-loss" effect - where the further an SP falls, the more stop losses are triggered and the further the SP falls, like a death spiral. It usually sorts itself out in a day or two. I don't have a view on DRO specifically because the company itself does not interest me, but just commenting on what has been happening in terms of the trading today.

Tony Locantro, an ex-Federal Cop turned small cap mining and biotech speculator/investor/analyst coined the term "Speeding Ticket" for a Please Explain email from the ASX to a company whose share price (SP) had moved a LOT in a very short timeframe. He started using that term on YMYC (Your Money, Your Call) back in the day, and it caught on and now everybody uses it.

I think @neke86_ was perhaps suggesting that the ASX stepping in at this point and pausing trading has rescued holders from further damage in relation to that death spiral (stop loss effect or investors acting like sheep panicking and all running the same way).

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Bear77
Added 4 months ago

Additional: Trading Pauses usually don't last long, and if DRO don't respond to the ASX within 15 to 30 mins, often the ASX in these circumstances will roll the Trading Pause into a Trading Halt, which can last up to two days. Beyond 2 days it becomes a trading suspension, if it was to last that long.

Further Info: https://stockhead.com.au/primers/confused-heres-what-trading-halt-pause-and-suspension-from-quotation-mean-on-the-asx/

14

Bear77
Added 4 months ago

DRO: 3:12pm Sydney time today (Tues 16-July-2024): Response-to-ASX-Price-Query.PDF

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No longer paused.

SP drop is due to short report on DRO as detailed above. Probably won't stop the bleeding, but gives it some context.

13


UlladullaDave
Added 4 months ago

Good work, Billy. You nailed it!c0c496584db40b172ea4326ba51140d894dc7c.png

The market reaction today would suggest there is a lot of hot money in this stock chasing momentum. And yes, I guess I am Captain Obvious in pointing that out.

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